Auto insurance is a basic type of insurance that all drivers are required to have in all 50 states. An auto policy can have several different coverages, but the basic types include liability, collision and comprehensive coverage.
All states require that drivers carry a minimum level of liability coverage as part of their auto policy. liability coverage is what covers a driver if that driver is involved in an at fault accident with someone else. For instance, if you rear end the driver in front of you, your liability insurance would pay for the damage to the other person’s vehicle. Liability would also cover the driver and passengers in the other vehicle if they sustained any injuries.
The next major component of an auto policy is collision coverage. This type of coverage pays for damage to your car if you are involved in an accident. Collision coverage has different deductible amounts that you can choose. You may wish to carry a 500 dollar deductible. This means that if you were in an accident, and you wanted to repair the vehicle using your policy, you would be responsible for the first 500 dollars of repairs. After that, the insurance company would pick the cost of the repair.
Another major type of coverage in an auto policy is comprehensive coverage. This coverage protects your vehicle against damage from a host of different causes. Damage from hail and storms is covered under comprehensive. Windshield repair and replacement is a comprehensive loss as is damage from a flying object. Comprehensive coverage also protects you if your vehicle is stolen or if your vehicle is vandalized.
Auto insurance protects you from a wide array of incidents that might involve you and your vehicle. It is a basic insurance that will be of great benefit should you be involved in an accident or if you experience another type of vehicle related loss. An auto policy will save many dollars in out of pocket expenses and give you peace of mind.