Simple Facts about Auto Insurance
Auto insurance provides protection for drivers, their vehicles and others on the streets. Pedestrians, passengers and other drivers benefit when a person has auto insurance. You never know when an accident could occur. Things are much easier to handle when the person at fault has insurance. Coverage is also for things like personal injury, property damage and car repair or replacement. Also, most states in the US require drivers to have auto insurance.
Liability covers personal injuries, deaths, and property damage as a result of an accident caused by the policyholder. This means if the policyholder accidentally backs into a car, then liability insurance will pay to repair damage done to the car that was hit.
Collision coverage pays to repair or replace the policyholder’s car after an accident. Liability insurance is required by most states, but collision coverage is optional. It’s good to have because banks require customers to carry collision insurance as a condition of a car loan.
You benefit from a good policy by knowing you have financial protection in place. With car insurance, the burden of paying out of pocket for accident costs and court costs is not a problem. And if someone else hits you, then their liability insurance will help pay for your medical care.
Most states require auto insurance to help keep people from suffering financially following an accident. The least you can have is liability, and that’s pretty good. You will pay a premium every month, but it’s worth the cost. Drivers can focus on healing, and fixing their vehicle without worrying relentlessly about financial hardship.