Your Auto Insurance Coverage Explained

If you drive, you need auto insurance. Auto insurance is security. Auto insurance policy holders pay premiums and in return, the auto insurance company

Subsidizes expenses involved in an auto accident. Drivers have a few options they can choose from when selecting an auto insurance policy. Drivers can choose the level of coverage and liability of their policy.

However, more liability and coverage means higher premiums. Different states have different auto insurance coverage laws, so be sure to check with the DMV or your auto insurance company about specific state requires. Standard coverage options include medical coverage, collision, and comprehensive coverage. Liability coverage options include injury and property damage.

Some people see auto insurance as a burden. They think they're perfect drivers and will never get in an auto accident. Now you're stuck with medical and car repair expenses. Basic auto insurance only provides basic coverage; and the term "basic coverage" means different things to different insurance companies. If you're shopping for auto insurance, don't just ask for the most inexpensive and basic policy. Auto insurance is a basic necessity of life.

Auto Insurance Faqs: Accidents Happen

Having auto insurance is a great way to be prepared for an auto accident. When shopping for auto insurance, it's important to look at auto insurance rates

What should I do if I've just had an auto accident?
If you have a camera in your car, get some shots of the damage and general accident scene. When you get home, call your auto insurance company to report the accident if there will be a claim on your policy. If the other driver was at fault and you don't live in a "no-fault" state, contact their auto insurance company to start the claims process.

What coverage pays for damage to my car?
If you're at fault in an auto accident (whether you've crashed into someone else or into a fence), you'll need collision coverage if you want your repairs covered. If someone else crashes into you, their liability auto insurance must pay for repairs to your vehicle. This is called a "third-party" claim because you're making a claim on their auto insurance company.

You can never be too prepared when it comes to an auto accident. Auto insurance companies are there to help you sort through the car damage and remove some of the headaches and worries for you.