Auto Insurance Facts for Drivers
You can’t legally drive a car without auto insurance. In most states, you can’t get a new car tag or renew an existing tag without proof of insurance. Here are some facts about auto insurance to keep in mind.
Auto Insurance Defined
This insurance is property and casualty insurance that provides financial assistance if you cause a car accident. Your policy determines what types of incidents are covered. That’s why you should understand what you’re getting when you buy an auto insurance policy.
Auto Insurance Necessity
Anyone who owns a car needs auto insurance. You might even need coverage if you don’t own a car. Some states require anyone who drives car to have insurance coverage. If that applies in your state, then you need a non-owner policy. You can also get your name added to someone else’s policy if you often drive their car.
Auto insurance works like other types of property/casualty insurance. You file a claim following an accident. If you cause the accident, then you should contact the insurance agency immediately. If someone else causes the accident, then their insurance should pay for the damage. But you should still contact your agency and inform them of the incident. There’s a possibility that the person at fault doesn’t have coverage. In that case, your agency will pay for your damages if you have collision coverage.
Liability is the minimum amount of auto coverage required by law. This coverage pays for damages and injuries you cause. Collision coverage pays for damage you suffer if someone else causes the accident, but they don’t have insurance. Comprehensive coverage pays for damage caused by non-collisions, such as from vandalism or theft.
Auto insurance is beneficial because of its financial assistance. Think of all the money you’d have to pay following an accident if you didn’t have insurance. That should be enough to make you realize it’s beneficial to have insurance.