The last thing you need when you’re driving is an accident. The bad news is, accidents happen. The good news is that with auto insurance, you can get the financial protection you need to help cover the costs of your vehicle, medical bills and other expenses that come with an accident.
What is Auto Insurance?
When you buy auto insurance, it’s important to understand that you’re entering into a contract with an insurance company. The company agrees to pay out expenses in return for your paying a premium. The policy can cover damage to your car and property, as well as personal injury caused by accidents involving your vehicle (or someone else’s).
Auto insurance policies are often categorized into two types: liability and comprehensive/collision coverage. Liability coverage pays for damages incurred when you cause an accident—this includes bodily injury or death of others involved in the crash, along with their vehicle damage. Comprehensive/collision coverage covers damage caused by non-collisions (e.g., fire, vandalism). You can choose which type of coverage meets your needs; some people decide not to purchase collision because they have purchased their cars using cash instead of financing through a bank or credit union (which requires them to have collision). Others prefer not having comprehensive if they live in a low theft area—if there aren’t many accidents happening around them then it would be pointless spending money on both types of insurance since only one is needed at this point in time!
What Does Auto Insurance Cover?
Auto insurance covers you if you are at fault in an accident. It also covers accidents that are not your fault, such as those caused by other drivers.
Auto insurance covers the costs of repairing or replacing your car if it is damaged in a collision or otherwise loses value due to theft, fire and vandalism.
Auto insurance protects you from lawsuits if someone else is injured because of something that happened while driving your car (or someone else’s). This includes medical expenses for the injured person, as well as any legal fees related to court cases over injuries sustained in an accident with your vehicle.
Who Needs Auto Insurance?
If you drive a car, motorcycle, bicycle or other type of vehicle on public roads and highways, you need to have auto insurance. Even if you are just a passenger in someone else’s vehicle—or even if you’re not in a vehicle at all—you may still be required to purchase auto insurance. This is because many states require that every driver carry certain types of coverage in order to reduce their financial liability for any accidents that occur on their watch.
- If you are driving or riding as a passenger in someone else’s car, boat or motorcycle without being properly covered by your own policy (known as uninsured motorist protection), then the other driver might sue your family for damages caused by your negligence if they are injured in an accident that isn’t their fault. This can lead to significant legal fees and medical expenses for both parties involved in the incident; therefore it’s best practice for each person who uses a motorized vehicle on public roads and highways to ensure they have adequate coverage before getting behind the wheel—even if they don’t expect anything bad could ever happen while operating such expensive machines!
Why Do I Need Auto Insurance?
Auto insurance protects you in the event of an accident, whether or not it is your fault. It also covers damage to your car and other vehicles involved in a crash, as well as property damage caused by your vehicle. You’ll have peace of mind knowing that if you are at fault for an accident, the other driver’s costs will be covered.
Auto insurance also provides protection against lawsuits by injured people who feel they were wronged by your negligence—even if their injuries aren’t serious enough to warrant a lawsuit. By having auto insurance, you can ensure that your assets are protected from legal liability resulting from accidents involving drivers who don’t have coverage themselves.
Having good auto insurance can protect yourself and others from financial loss associated with:
- Medical expenses
- Property damage
How Much Auto Insurance do I Need?
How much auto insurance do I need? How much should you insure your car for? These are questions that many people ask themselves when they’re shopping around for auto insurance. The answer is simple: it depends on where you live and the type of car or house that you own. Below are some examples of how much to insure your home or health for in different states:
- Home: $200,000
- Health: $200,000
Which Auto Insurance Company Should I Choose?
The first step to determining which auto insurance company to choose is to look at the company’s financial strength.
- Call the National Association of Insurance Commissioners (NAIC). The NAIC is a nonprofit that provides insurance regulators across the country with data and statistics on state-licensed insurers. You can call them at 1-800-388-3236, or use their online database (http://www.naic.org/query_statistics/index) to see how well an insurer has performed in your state over the past three years.
- If a firm isn’t rated by A.M. Best or Standard & Poor’s, check its website for independent ratings from other sources like J.D Power or Weiss Ratings, which provide consumers with detailed information on an insurer’s financial condition and customer service record—and will give you an idea of how well they treat their customers after they’ve already paid their premiums every month!
You need auto insurance.
If you drive a car, you need auto insurance. In most countries and states, it’s required by law to have liability coverage. And because of the possibility of lawsuits, even if you don’t live in a state that requires it or do not own your own vehicle, auto insurance can help protect you financially and legally.
Here are some reasons why it’s important to get auto insurance:
- It helps protect against injuries from accidents caused by other drivers, including medical expenses for the injured person and legal costs for any legal action taken against them (such as paying their defense lawyer).
- It protects against theft of your car or damage caused by vandalism while parked on public property such as streets and parking lots outside stores where there’s no security guard present all night long (these kinds of things happen more often than people think!).
- If someone gets hurt while driving drunk behind the wheel with no seatbelt fastened down around him/her like he should be doing according to law then who pays? You guessed right – YOU DO!
Auto insurance can be confusing, but it’s important to understand that it is a necessary part of owning a vehicle. If you are looking for an affordable auto insurance policy, we recommend calling our office at (425) 555-5555.