Auto Insurance Policies
Auto insurance is a form of insurance purchased for cars, trucks, motorcycles, and other road vehicles that exists to protect a driver and their property. Drivers pay a determined premium based on the contract they form with their insurance provider (based on factors such as driving record, type of vehicle, driver's age, where the driver lives, etc.) and in turn, they are provided with financial protection in the event of a collision, or other set events.
Several types of auto insurance coverage exist, including liability, medical, and vehicle. Liability coverage is the most common coverage provided, and is required by law in most states in the U.S. The purpose of liability coverage is to pay for bodily injuries and property damage caused in a vehicle accident; however, liability does not cover the expenses of the at-fault driver. The at-fault driver will have coverage if their insurance plan includes medical and vehicle coverage.
Medical coverage provided by a car insurance company will pay for the injuries of the at-fault driver and their passengers, funeral costs, and injuries sustained if hit by a car as a pedestrian or on a bicycle. Vehicle coverage may vary depending on services provided by the insurance company. Comprehensive coverage pays for car repairs in the event of a non-traffic incident, such as fire, theft, or vandalism. Collision coverage pays for repairs due to a traffic accident. Depending on the insurance company, other options may be made available such as rental car reimbursement or emergency services.
Carrying liability insurance is legally required in most of the United States; however, there are a number of benefits for holding medical or vehicle coverage. Insurance provides financial help for expensive medical expenses and vehicle repairs that would otherwise be the full responsibility of the at-fault driver without insurance. Many policies include towing and roadside assistance, a plus for drivers who may be stranded.
Before purchasing an auto policy, it is important to check with your state guidelines to ensure that the minimum coverage is met. Without it, costly tickets, legal obligations, vehicle repairs, and medical expenses can add up.
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