All you need to know about auto insurance
If you drive a car, you need auto insurance, even if you don’t own the car. What level of insurance you need depends on a number of factors.
What is it?
Automobile insurance is a type of property and casualty insurance. Depending on the level of coverage you have, it covers you for damages you cause to other cars and property in an accident, damage that’s caused to your own vehicle and liability coverage for injuries you may cause in a crash.
Who is it for?
Automobile insurance is for anyone who drives. You don’t have to own an automobile to need insurance. If you drive someone else’s car, it is your insurance that will cover you, not the car owner’s insurance.
How does it work?
To find out if you will be covered in an accident, you have to file a claim with your insurance company. An adjuster will then evaluate the damage, and if you are covered for it, he or she will recommend a payout. You might get reimbursed for repair costs or, if your car is determined to be totaled, you may be issued a check for what the insurer determines to be the value of your car. If your car is damaged by someone else, you may have to deal with that person’s insurer.
Different types of coverage
There are several different types of auto insurance, and not all drivers need to carry all coverages. The most basic level of coverage, which is required for drivers in nearly all states, is liability. This coverage will pay for damages that you cause to others in an accident. Collision coverage pays for damages caused to your car by a collision that aren’t covered by another driver’s insurance. Comprehensive coverage pays for damage to your car from weather, theft or other causes besides a crash. Other types that some drivers might carry in some states include uninsured motorist and personal injury protection.
The major benefit of having automobile insurance is that you, at a minimum, are covered in case you cause damage or injury to others in an accident. If you carry collision and comprehensive, your own car is covered.All you need to know about auto insurance
don’t own the car. What level of insurance you need depends on a number of factors.