Auto Insurance Basics

There are more cars and drivers hitting the road every year. With countless vehicles on the road, crashes will happen. Car insurance can be the difference between a small inconvenience and a large trial. How can you determine what insurance you need and how to buy it? Car insurance provides you with protection from paying for injury or damage you cause others while driving your car, damage to your car or injury to you or your passengers from a crash, and certain other occurrences, such as burglary. Making the decision to drive without owning insurance could mean you have to repair or replace a stolen or damaged vehicle and pay the cost of all the damage for which you might be responsible. Liability: Bodily injury and property damage that you are responsible for will be paid for under liability insurance. Bodily injury damages include medical expenses, lost wages, and pain and suffering. Property damage includes car repair costs or loss of use of property. If you are sued, it also pays your court costs. State laws typically require standard amounts of liability insurance, but higher amounts can be purchased and are extremely helpful. Personal Injury Protection: Personal injury insurance is mandated in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. State law typically sets minimum amounts. Medical Payments: Medical payment coverage can be purchased in non-no-fault states and will pay regardless of who is responsible for an accident. If you purchase this type of coverage, you will receive payment for necessary medical and funeral expenses. Collision: Damages resulting from a collision will be paid for under this type of insurance. Comprehensive: Protect your car from damages from other sources by purchasing this type of coverage. This includes protection from burglary, vandalism, and weather damage. Uninsured Motorist: Many drivers are breaking the law by driving a car without purchasing the right amount of insurance. This type of coverage will cover you if you are in a collision with one of these irresponsible drivers. Under-Insured Motorist: Just like uninsured motorist protection, this type of insurance covers you from drivers without enough insurance coverage. Emergency road service, car rental, and other types of car insurance can also be purchased. State Farm Clermont