The 411 on Auto insurance
Last time I checked, every state in the U.S. mandates that drivers obtain some amount of car insurance coverage. This, of course, is not just to comply with law but to also protect yourself, and other drivers too.
As a form of property and casualty insurance, auto insurance coverage protects not just your vehicle and other cars, but other kinds of property too should there be an auto accident or some other kind of event that results in damage and/or injuries.
This auto coverage is designed for all who drive. Keep in mind that, despite what your policy verbiage might suggest, the coverage actually follows the driver as opposed to the vehicle. Should you, for example, borrow someone’s car, it’s the norm for your insurance to still cover you for damages in an accident while driving a car other than yours.
Automobile insurance works not too differently from other kinds of property and casualty insurance. Should one be involved in an accident or suffer damage resulting from some other covered issue, like a powerful storm event, it is incumbent upon the policyholder to contact his or her insurance company for the purposed of submitting a claim. Next, an adjuster will visit and proceed to evaluate the damage and determined whether the claim is valid. If all goes well, the insurance company will allow for compensation to get the car either fixed or replaced. Should a policyholder inflict damage upon another person’s property, his or her insurer will then contact the other individual or insurer to work out payment for the damage.
Virtually all drivers are mandate to obtain liability coverage which is what can pay for damage done to other people’s property in the event of an accident, assuming it is the policyholder’s fault. Other usual types of car insurance coverage include collision, which helps to protect your car from damage resulting from a crash and comprehensive, which is what handles damage that does not result from a crash, like the aforementioned storm damage or theft or even vandalism. There is personal injury protection, which compensates for medical bills from a crash that go beyond the car insurance policy limits.
The major result of having good auto insurance is the peace of mind in knowing that one is complying with the law and being financially protected from loss that’s caused by an accident.