As the number of people keeps growing, more cars and drivers are on the roads. With so many cars on the road, accidents are bound to happen. Car insurance can make the difference between a small hassle and a big one. But why is insurance important, and how much should you buy?
Auto insurance is required by law in all states. It protects you by paying for damage or injuries you cause to other people while driving your car, as well as for damage to your car or injuries to you or your passengers in a crash, theft, or vandalism. If you don't have insurance, you might have to pay for any damage you do to other people with your car out of your own pocket.
Coverage requirements vary from state to state, but usually include:
Liability: It pays for injuries and property damage to other people that you cause and are responsible for. Damages for injuries to the body include medical bills, lost wages, and money for pain and suffering. Damage to property includes both things that are broken and things that can't be used. Minimum amounts are usually set by state laws, but higher amounts are possible and usually recommended.
This type of insurance is required in many states. It pays for medical care for you or your passengers after an accident, no matter who was at fault. This is called "no-fault coverage." It may also cover lost wages, the cost of replacing services, and funeral costs. Usually, minimum amounts are set by state law.
Medical Payments: This coverage is available in some states, usually the ones that don't have "no-fault" insurance. It pays for medical bills no matter who was at fault. It pays for a person's reasonable and necessary medical bills and funeral costs if they get hurt in a car accident.
Collision: This covers damage to your car from a crash.
Comprehensive: This covers damage to your car caused by things "Other Than Collision," like fire, wind, hail, vandalism, and animals.
Uninsured Motorist: This pays for damages when an insured person is hurt in a crash caused by someone without liability insurance or by a driver who hits someone and then drives away.
Underinsured Motorist: This pays for damages when an insured person is hurt in a crash caused by someone else who doesn't have enough liability insurance to pay for all of the damages.
Premiums for auto insurance vary a lot from company to company and depend on a number of things, such as:
What coverages you choose, the make and model of the car you drive, your driving record, your age, your gender, whether or not you're married, and where you live.
Many people think of auto insurance as a bad thing that you have to get because it can save your money. Think about what you need, do your research, and then make the best choice for you.
