About Auto Insurance

What is Auto Insurance?

Auto insurance is required by many of the US states to cover the operator in the unfortunate event of an auto accident. This type of insurance will cover the driver in case of injury to another person, damage to another vehicle or their own. It also provides coverage against theft, windshield damage, and hit and runs. There are different coverage options that can be mixed and matched to find the best policy for the owner or operator; some of the main ones are listed below.

 

Main Elements of Car Insurance

 

  • Liability Insurance – This coverage insures against any damaged caused to another person in the accident. It also covers you in a legal liability. If you are found at fault in an accident and cause injury to another person and they, in turn, decide to sue you, the insurance covers your legal bills as well as any court fees incurred. This coverage may also apply to you when you are renting a car. In some cases, auto insurance follows the owner and not always just the car.
  • Collision Insurance – This coverage is often overlooked or underestimated. Collision insurance covers any damage made to your car or the other car(s) involved in the accident. There is a deduction associated with this type of coverage that has to be paid when making a claim. The deduction payment is usually significantly less than what it would cost to make the repairs without insurance coverage.
  • Comprehensive Coverage – Is to cover you in any case of damage to your vehicle by means other than a vehicle collision. This coverage is for theft, fire, vandalism, weather, or collisions with an animal.

The Benefits of Auto Insurance

The benefits of auto insurance outweigh the costs and anxiety of not having coverage. It protects you from paying all of these bills out of pocket. Imagine you were in an accident and the other driver as well you were hurt. Not only would you be out of pocket for your own expenses from being off work, you would be required to pay for the cost of your car. If you were found liable for the accident you would also be responsible for paying all of the expenses for the other driver. This is why vehicle insurance coverage is imperative (and mandatory) when driving.

 

Auto Insurance Statistics

In 2009, the United States census reported that there were 10,800,000 motor vehicle accidents. Out of those there were 13,900 deaths caused by auto collisions* and about a quarter of the accidents involved a permanent injury. That means that someone is hurt in a crash every 14 minutes and there are 94 deaths every day in the US.

 

Why Purchase Auto Insurance

Auto insurance coverage is beneficial as allows you to pay, on a monthly or yearly basis. It’s bad enough to be involved in an auto accident so this protection guarantees you won’t have to pay a lump sum for car repairs, replacement or hospital and care bills.