How Does Automobile Insurance Work?

The amount of drivers on the road increases each year. As this number goes up, the chances of a car accident will also increase. If you get in a car wreck, the car insurance you have can make a large difference in what happens next. So how can you figure out what insurance you need and how much to buy? Mandated coverage varies based on the state/province but usually includes the following: Liability: Liability pays for the expenses you have caused to others in a car collision, including property damage and injury. Damages from bodily injury can include medical expenses, and lost wages. Property damage can refer to damaged property and loss of use of property. It can also cover your defense and court costs if you are sued.
Local laws usually mandate standard amounts of liability insurance, but higher amounts are available and extremely helpful. Personal Injury Protection: This type of insurance pays for hospital bills and other medical treatment for you or other people in your car, no matter who was at fault in the collision. It is sometimes called no-fault coverage. The minimum amount of personal injury protection is usually set by the state. Medical Payments: This type of coverage can be purchased in non-no-fault states and will pay regardless of who is responsible for an accident. This insurance will pay for all insured person’s necessary medical or funeral expenses resulting from a crash. Collision: This pays for damage to your car caused by an accident. Comprehensive: This type of insurance covers any non-collision damages. This may include fire and wind damage, vandalism, and theft. Uninsured Motorist: Too many drivers are breaking the law by driving a car without owning the right amount of car insurance. This insurance will protect you if you are in an accident with one of these drivers. Under-Insured Motorist: This pays for collision expenses when an insured person is in a crash caused by a driver who does not have the right amount of insurance to pay for the total amount of the damages. Other types of car insurance, like emergency road service and car rental, can also be purchased. Your car insurance payments vary by company and will depend on multiple factors, such as: * Which policies you choose * The make and model of the car you own * Your driving record * Your age, sex and marital status * The place where you live Some have come to think of car insurance as a necessary evil, but it can truly save you from a financial disaster. Evaluate your needs, research your options, and with the help of your insurance agent, make the decision that fits you best.

Posted in: Auto insurance,Casualty insurance,Citizens Property Insurance,Liabilty insurance