Insurance and What It Means To You

There are more cars hitting the road each year. As this number increases, the possibility of accidents also increases. If you get in a car crash, the car insurance you own can make a big difference in what happens next. But why do you need to own insurance and exactly how much should you buy? Car accidents can lead to many different expenses, which can all be paid for based on the type of coverage you have purchased. Every state or province mandates car insurance by law. By not owning insurance, you run the risk of having to pay the total cost of the harm or injury you cause others or to repair or replace your vehicle if it is damaged or stolen. Liability: Pays for expenses due to personal injury and damage to property that you are responsible for. If you are in legal trouble, it also pays your defense and court costs. Local laws usually require minimum amounts, but larger amounts are available and extremely helpful. Personal Injury Protection: This type of insurance pays for the medical treatment for you or other people in your car, regardless of who was responsible for the crash. It is sometimes called no-fault coverage. The minimum amount of personal injury protection is typically set by local government. Medical Payments: This type of coverage is available in non-no-fault states and will pay no matter who is responsible for the accident. If you buy this type of coverage, you will receive payment for all types of medical or funeral costs. Collision: This pays for damages to your vehicle caused by a collision. Comprehensive: This kind of insurance covers all non-collision damages. This could include hail damage, vandalism, and theft. Uninsured Motorist: Many drivers are breaking the law by driving a car without purchasing the right amount of car insurance. This insurance will protect you if you are in an accident with one of these drivers. Under-Insured Motorist: There are other drivers who have liability insurance that might not be able to cover all the expenses they are supposed to take care of. Under-insured motorist coverage covers you from those drivers. Emergency road service, car rental, and other types of coverage can also be purchased. Car Insurance Groveland