Understanding Auto Insurance

It can also help you compare car insurance rates accurately as you re shopping for car.

Understanding auto insurance. An auto insurance policy is a contract between you and an insurance company. In the event of hail damage or a tree limb falling on your car risks not involving an automobile collision this coverage insures you. Car insurance is financial protection in case you get into a car accident and damage someone else s vehicle or cause them injury. Everyone who owns a car should purchase auto insurance so they are covered for property damage medical bills and legal costs.

What does car insurance cover. Comprehensive coverage pays to repair your vehicle subject to. An auto insurance policy is an agreement between a driver the policyholder and an insurance company where the policyholder pays the insurance company a fee the premium in exchange for the insurance company s promise to pay a claim if there is an accident. This car insurance guide will offer you helpful insight and tips into your auto insurance policy.

If you re in an automobile accident regardless of who is at fault collision insurance provides protection to replace or repair your vehicle subject to a deductible. Your policy is a legal contract binding the insurance company to perform specific actions under certain circumstances for an agreed upon price. Understanding the simple basics of auto insurance will make you confident that the car insurance policy you choose will take care of your needs in the event of an accident. Though it s a necessary and valuable form of protection buying auto insurance can be confusing when you first start.

States provides some financial protection if you or another driver using your car causes an accident that damages someone else s car or property injures someone or both. Most states in the u s. A glossary of auto insurance terms can really help you understand your policy as you deal with a claim. The basic personal auto insurance mandated by most u s.

An auto policy can also cover you if your car gets damaged in an accident or by another covered peril like falling objects fire or lightning. Require all car owners to have some form of auto insurance to protect from the high costs associated with car accidents. Top considerations who needs auto insurance. You agree to pay the cost of the insurance policy called a premium and to obey the insurance company s stated rules in return the insurance company agrees to pay for certain expenses associated with an accident or other covered losses.

Before purchasing auto insurance you must consider a variety of factors including what kind of car you have your driving record and the amount of money you are willing to pay. Stay tuned for the rest. It s important to understand what your insurance will cover and how to protect yourself.