Everything You Need to Know About Auto Insurance

The amount of cars and drivers on the road increases every year. This can lead to a higher possibility of a collision for you and your family. Car insurance can make the difference between a minor inconvenience and a large trial. But why do you need to own insurance and exactly how much should you buy? Your car insurance may be able to pay for the expenses from a car crash ranging from hospital bills to legal fees. Auto insurance is required by law in all states and provinces. By not owning insurance, you risk having to pay the total cost of the harm or injury you cause others. Liability: Bodily injury and property damage that you are responsible for will be paid for under this type of insurance. Damages from bodily injury can include medical expenses, and lost wages. Property damage can refer to damaged property or loss of property use. If you are in legal trouble, this type of insurance can pay for your court costs. Local laws typically require minimum amounts of liability insurance, but higher amounts are available and usually recommended. Personal Injury Protection: Personal injury protection pays for the medical treatment for you or your passengers, regardless of who was responsible for the collision. It is required in some states and optional in others. This insurance can also cover lost wages, service replacement and funeral expenses. Local government typically sets minimum amounts. Medical Payments: Medical payment coverage can be purchased in states that are not considered no-fault and will pay no matter who is responsible for the accident. If you buy this type of coverage, you will receive coverage for all types of medical or funeral expenses. Collision: Damages resulting from a collision will be covered under this type of car insurance. Comprehensive: Applies if your car is stolen or damaged by something other than a collision, including fire, wind, hail, flood or vandalism. Uninsured Motorist: If you are in an accident with an uninsured driver or a hit-and-run driver, this type of insurance will protect you. Under-Insured Motorist: Just like uninsured coverage, this type of insurance covers you from drivers without sufficient insurance protection. Emergency road service, car rental, and other varieties of car insurance can also be purchased. Auto Insurance Clermont