How Does Automobile Insurance Work?

Each year, more drivers travel our roads and freeways. With the increasing number of vehicles on the road, accidents will happen. If you get in a car crash, the auto insurance you have can make a large difference in how much you have to pay. But why do you need insurance and just how much should you buy? Insurance requirements will differ by state/province, but usually include the following: Liability: Pays for damages due to personal injury and property damage to others for which you are responsible. It can also cover your legal fees if you are sued. Recommended, higher levels of liability insurance are available that take care of more events than the lower, state-mandated insurance. Personal Injury Protection: This type of insurance pays for hospital bills and other medical treatment for you and other people in your car, no matter who was at fault in the accident. It is sometimes called no-fault coverage. It can also pay for lost earnings, replacement of services and funeral expenses. Local government usually sets minimum amounts. Medical Payments: Medical payment coverage can be purchased in non-no-fault states; it pays regardless of who carries responsibility for an accident. It pays for an insured person's necessary medical and funeral expenses resulting from an accident. Collision: Damages resulting from a collision will be covered under this kind of insurance. Comprehensive: This kind of insurance covers any non-collision damages. This could include fire and wind damage, vandalism, and theft. Uninsured Motorist: If you are in an accident with an uninsured driver, this type of insurance will protect you. Under-Insured Motorist: Pays for damages when an insured person is in an accident caused by a driver who does not have the right amount of insurance to pay for the full cost of the damages. Other kinds of coverage, including car rental, are also available. What you pay for car insurance varies by company and will depend on several factors, such as: *Your desired coverage *Your vehicle's make and model * Your driving record * Your age, gender and marital status * The place where you live Many people consider car insurance to be a necessary evil, but it can save you from a financial dilemma. Evaluate your needs, do your research , and with the help of your insurance agent, choose the option that fits you best. State Farm Clermont