Auto Insurance Policies
Customers shopping for a car know that they are required to purchase auto insurance, but they may not understand what it does for them. Car insurance protects the driver who has been in an accident. Depending on the coverage purchased, it can cover the vehicle for damages as well. The government legally requires that drivers carry liability coverage and, in some states, medical coverage is required as well. Liability means that the driver is protected if they cause an accident and cause damage to another person, and the liability will protect them from a possible court case.
Two types of coverages are available in the event of vehicle damage. The first type of coverage is collision, which covers the vehicle involved in an accident with another car. This usually has a deductible, which is the first amount the driver pays, out-of-pocket, before the insurance company will pay for the remaining expenses.
The other type of coverage is called comprehensive, and this is for everything that is not a collision. That includes the glass on the windshield, fire, theft, vandalism, falling objects and hitting an animal. Again, most people have a deductible and will pay for the first part of their damages.
Everybody needs car insurance if they are driving a car, and it offers them protection from being sued. Drivers who cause an accident will have their insurance company step up and represent them in court, and they won't have to worry about being on the hook for large amounts of money. Also, those who purchase coverage to protect their vehicle will be able to have their car repaired when it has been damaged. Drivers also have the option to choose where they can have their cars fixed.