What is Auto Insurance

Auto insurance premiums and policies are bought to lessen the individual financial burden associated with auto vehicle accidents, or other incidents, that may impact automobiles you own, lease and drive. Get a cheap auto insurance quote and save! Certain Risk and financical responsibility associated with vehicle ownership may include physical medical expenses for injured pedestrians and people, property damages associcated with repair of automobiles associated in an accident, or non-accident such as acts of God or damages that may result from storms, theft, vandalism or natural disasters. Insurance providers supply auto insurance through personal auto policies. An auto policy is a legal contract between drivers and your insurer, identifying each party's responsibility and obligations. In genreal your insurer promises to insure specific coverages to drivers associated with your policy in exchange for your payment of requested premiums.  

Why Do You Need Auto Insurance? All states demand and require you to be financially responsible when driving a vehicle. Your state may require you to purchase auto insurance or post a bond. State law (and/or your lender) specifies the minimum coverage amounts for vehicle insurance. You may find it important to purchase more coverage, however, in order to protect your vehicle investment, pay for required medical expenses, cover your legal responsibility, and cover any additional losses related to automobile. For example, if you are at fault in a collision that results in damages in excess of the specified limits of your auto insurance policy, your personal assets and future investments may be put at risk.

When Do You Purchase Auto Insurance? You may begin to purchase auto insurance whenever you start driving or buy a vehicle. You may also reconsider your current automobile policy if your family situation changes. Because marital status, number of at age children, and income levels may change, you should review existing policies between premiums and from time to time to ensure adequate coverage.

Information About Automobile Insurance Policies Automobile insurance providers offer many different types and amounts of coverages, depending upon a person or family needs. Although there are different variations of automobile insurance coverages and amounts, automobile companies offer five areas of coverage: Liability, Medical Payments, Uninsured and/or Underinsured Motorists, towing and rental, and Coverage for Physical Damage to Your Vehicle.

Liability: If you have an at fault automobile accident, you will become liable for the damages that you may have caused to other’s property. Property damage liability coverage assist you from such liability by paying for legal costs or damage claims that are filed against you as a result of an accident for which you are found legally liable. Bodily injury liability coverage protects you from escalating legal costs and claims filed against you in the event that you injure or kill someone in an automobile accident.

Medical Payments (Med Pay): : By offering medical payments/personal injury protection, your automobile policy will cover you and your passengers' medical expenses if you are injured in an automobile accident. Medical payments/personal injury protection also protects you as a passenger in someone else’s vehicle. “Med Pay” coverage only pays for physical injuries. It does not cover pain, suffering, or lost wages caused by an automobile accident.

Uninsured or Underinsured Motorists: : Protects you against drivers that may have caused the accident but are uninsured or underinsured. “Uninsured or underinsured motorist” coverage is also liability coverage for underinsured or uninsured drivers that you may collide with.

Coverage for Physical Damage to your Vehicle: : Protects your vehicle against physical damage caused by specific perils. Individual automobile policies have different levels of coverage. There are two types of coverage: collision, which covers only collision damage, and other than collision (also known as comprehensive coverage), which covers all risks such as vandalism or fire (with specific exclusions). Individual automobile policies will define the perils your vehicle is covered against and the physical damage coverage included in your policy.

Premiums : Automobile insurance premiums are written on an individual basis with an individual’s personal statistics taken into account to determine the cost of the policy. Key factors associated with automobile insurance premiums include: Operator Age, Operator Gender, Number of Operators, Number of Vehicles, Location, Driving Record, Type of Vehicle

As with most insurance products, automobile insurance policies are comprised and purchased based on each individual’s needs. There are specific exclusions, provisions, and limitations to each type and amount of coverage defined in individual automobile policies. Also, endorsements can be added in order to customize individual automobile insurance coverage.