There are millions of drivers on the road today, some of them not so great. An accident, or even auto theft, can cause a huge negative financial impact to the average American. Having car insurance is not only a safeguard for you but it is also required by law in many states.
What Is Car Insurance?
Car insurance is an insurance policy written to protect your financial interest in case of accident or auto theft. Insurance policies will usually be broken down into several sub-policies that tie together: Liability, Collision, Uninsured Motorist, and Comprehensive.
Do I Need to do a Car Insurance Comparison?
Yes! Car insurance not only covers your expenses if you are injured or loose your vehicle, but also covers any damage that you may cause if you are at fault for an accident.
What Does Car Insurance Cover?
Car insurance covers a variety of financially draining circumstances. Let’s take a look at the different types of insurance that you will be offered, or even required to carry.
Liability – Liability insurance can be sub-sectioned into two categories. Personal Injury and Property Damage. Personal Injury Liability will cover the medical costs of injuries relating to an accident, whether yours of someone you may injure. There is usually a cap on the amounts it will pay per accident. Property Damage Liability will cover repair cost of the other vehicle(s) involved in the accident.
Collision – Collision insurance covers your vehicle in the case of an accident and will help pay for a new vehicle if yours is considered a total loss.
Uninsured Motorist – This insurance policy will cover any damage to you and your vehicle in case of a collision by a driver who isn’t responsible enough to carry insurance, or whose policy does not cover all of your expenses. It also covers situations where the other driver cannot be reached, such as a hit and run. If you use your Uninsured Motorist Insurance, it does not count against you when up for renewal.
Comprehensive – Comprehensive Insurance covers damage to your vehicle in non-driving related accident situations such as a storm or a baseball through the windshield.
How Much Is Car Insurance?
The cost will vary depending on the company you choose, your age, the vehicle you drive, the coverage levels you elect, as well as your personal driving history and credit score. Rates for good drivers with high credit scores are lower than that for drivers who have a history of causing accidents. Married people often enjoy lower rates as do people over the age of 25. Compare prices between agencies but don’t make your decision on monthly cost alone. Check the ratings of the firm you choose. The best looking and most affordable policy won’t do you any good if the company won’t pay out.
