explanation of auto insurance

The simple fact is that a car accident happens every 18 seconds in the United States of America. Nobody ever thinks it's going to happen. You cannot predict the future, but you can be prepared with auto insurance for the vehicles in your household.

In most states, it is mandatory that drivers have at least minimum coverage auto insurance, which is why it's important to find out your state's minimum requirements. But many drivers choose more than the minimum coverage requirements in order to protect themselves to a greater degree.

Here we’ll be talking about “what is Auto Insurance?”.

Auto insurance is a safety net. A policy purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Instead of paying out of pocket for auto accidents, people pay annual premiums to an auto insurance company; the company then pays all or most of the costs associated with an auto accident or other vehicle damage.

Choosing auto insurance that fits your needs and the needs of your family is important, so get to know the basics. Here you'll find information about auto insurance and answers to some common questions. Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage. Generally, auto policies include several different types of coverage, all of which may be priced differently. An auto insurance policy is comprised of six different kinds of coverage:

1.      - Property coverage pays for damage to or theft of your car.

2.      - Liability coverage pays for your legal responsibility to others for bodily injury or property damage.

3.      - Medical coverage pays for the cost of treating injuries.

4.      - Rehabilitation.

5.      - Sometimes lost wages or Uninsured and Underinsured Motorist Coverage.

6.      - Funeral expenses.

Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year. Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

For example, if you have $500 in damages as the result of an accident and a $100 deductible on your auto policy, you are responsible for paying $100 of the total damages.

If you are responsible for causing an accident or damage to other vehicles, your insurance generally covers the costs of repairs, legal fees and medical coverage for those who suffered injuries in the accident. Insurance policies also cover costs incurred when your car is stolen or vandalized.

Auto insurance exists to protect you and your property. So be prepared by making sure that your vehicle is properly insured. Because the simple fact is - accidents do happen.