Auto Insurance Basics
Why Bother Even Buying Auto Insurance?
- Well, first of all, car insurance protects you against the financial risks associated with personal injuries as well as property damages caused by auto accidents or simply natural disasters.
- Second, it’s required by the law to purchase at least a minimum amount of insurance liability coverage. More expansive types of liability coverage may be an option or also required, it all really depends on local regulations.
- Third, if you have an outstanding car loan, you will be generally required by your lender to purchase at least a minimum amount of auto insurance.
Types of Liability Coverage:
- Body Injury Liability: protects you in case of an auto accident, where people are injured or even killed.
- Property Damage Liability: covers repairing and replacing the autos or other types of properties.
- Uninsured Motorist Coverage: insures you against losses caused by other drivers.
Finally, Things You Need to Pay Yourself:
- Deductibles: the amount of money that you have agreed to pay out of your own pocket before your insurance coverage comes into play.
- Exclusions: special situations in which the company is omitted from coverage, such as property damage or personal injure you intentionally cause to others.
- Costs Above Limitations: any expenses for which you are responsible that exceed the caps on the dollar amounts of coverage you are entitled to receive under the policy.