What Is Car Insurance And How Does it Work

Car insurance is an essential requirement for any driver. It protects not only your car, but also yourself, by allowing to pay for medical treatment. Although nobody can deny its benefits, there are many of us who do not fully understand its basics. Check our blog for more car insurance info and get an online auto insurance quote from our website.

GettyImages-131983498-577c784c5f9b5858753b5022First of all, you must understand that auto insurance is a form of financial responsibility and your state requires it. Keep in mind that auto insurance was conceived so that can people will be able to pay for the damage and injuries they cause. You may face steep fines for driving without car insurance.

There are many policies available on the market, but you must always comply with your state’s minimum requirements (coverage type and amount). The following options are available on the market:

Liability insurance is required in most states. Liability coverage pays for the damage you’ve caused in a car accident. This includes:

  • Bodily injury- Others people’s medical bills, lost income, funeral costs and rehabilitation.
  • Property damage- Repairs or replacement of others’ vehicles or damaged items such as street signs and mailboxes.

Liability car insurance amounts are usually written as a sequence of three numbers. These numbers refer to the maximums the insurance company will pay for injuries per person, injuries per accident and property damage per accident.

Collision insurance pays for your vehicle’s damage after hitting another car or an object.

Comprehensive insurance pays for car theft and damage to your vehicle due to natural disasters, fire, explosions, vandalism, floods and animal-related accidents.

Personal injury protection (PIP) covers your injuries and your passengers’ injuries regardless of who is at fault.

Uninsured motorist coverage covers your injuries and your passengers’ injuries if you’re in an accident caused by a driver with no insurance or not enough.

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