AUTO INSURANCE

AUTO INSURANCE

Auto insurance provides property, liability and medical coverage. Simply put, auto insurance is a safety net. It is a contract that you have with an insurance company in which you agree to pay a premium, and in the event of an accident, the company agrees to pay for your covered damages, as outlined in your specific insurance auto policy. Nobody ever thinks it's going to happen to them. But the simple fact is that a car accident happens every 18 seconds in the United States. Even the most careful drivers can find themselves involved in one.

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 .You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Insurance policies also cover costs incurred when your car is stolen or vandalized.
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company.

It is important to familiarize yourself with the terms 'premium' and 'deductible' when shopping for auto insurance. .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.

The auto insurance information center contains tips on saving money on your car insurance, resources on filing claims and getting quotes online, safe driving tips and provides general information on auto insurance.

An insurance premium is the amount of money your insurance company charges you for a certain policy.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages.

Your deductible is the amount of money that you are responsible for paying when damages occur as the result of an accident Your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year..

Types of auto insurance coverage

Auto insurance policies covers different prices in different ways like

·         Property Damage Liability. If you are responsible for causing an accident, you are legally held responsible for repairs to another person’s vehicle or property. Property damage coverage not only covers the cost to repair the other person’s car, but it also covers repair costs of anything you hit with your vehicle, such as a street lamp, fence or building. This type of coverage is required in most states.

·         Collision. This type of auto insurance coverage pays for damage to your car as the result of a collision with another vehicle. Even if you are at fault for causing an accident, this type of coverage will reimburse you for the cost of fixing your car once you have paid the out-of-pocket deductible amount. If you are not at fault, your insurance company can seek reimbursement from another driver to cover the cost of repairs to your vehicle. Collision coverage is optional in all states. However, if your automobile is financed, your bank or lending institution will require you to have this coverage.

·         Comprehensive. This coverage protects you for losses due to hazards not caused by a collision with another vehicle. This includes damages that are the result of theft, vandalism, fires, falling objects, earthquakes and storms, or contact with animals, such as deer. Comprehensive coverage is optional in all states. Though, like Collision coverage, if your vehicle is financed, your bank or lending institution will require you to have this coverage.

·         Uninsured and Underinsured Motorist Coverage. This policy protects you and other passengers in your automobile if you are injured in an accident by a motorist who is uninsured and held legally responsible for your injuries. It pays the medical expenses and related expenses you have incurred up to the coverage limits you select.

                                       
                               

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