Auto Insurance — Things You Should Know
Auto insurance is a policy that protects you from losses, damages and liability claims you may be exposed to because of your vehicle. It generally caters for three main areas: Property, liability and medical coverage.
Auto insurance requirements differ from one state to another. Washington auto insurance, Oregon auto insurance and most of them include…
1. Bodily Injury Liability
This takes care of your legal responsibilities to others for bodily injury suffered. It determines how much an insurer would pay out to each person involved and also shows the maximum payout per accident.
2. Property Damage Liability
You have a legal responsibility for property damaged caused by your vehicle. This part of your policy takes care of this and determines the maximum amount your insurer would pay out for such liability claims.
3. Protection From Underinsured/Uninsured Drivers
But what happens there are injuries to you or your passengers and the motorist at fault is either uninsured or underinsured? This part of your policy will take care of any bodily injury suffered by you or your passengers. It also sets the maximum amount your insurer is required to pay.
This part of your policy takes care of medical expenses incurred by you and/or your passengers due to an accident. It also sets out clearly the maximum amount to be paid by your insurer.
5. Collision Coverage
But what happens when you hit another vehicle? Yes, your insurer gets to fix the other person’s vehicle but what happens to yours? Well, this is the coverage type that takes care of your own vehicle. That is, if it’s included in your policy.
6. Comprehensive Coverage
This component protects you from losses you may suffer from damages to your vehicle that are NOT due to collisions with other vehicles. They include losses due to vandalism or theft and damages caused by natural disasters, falling objects, fire, etc.
So, choosing the best Auto Insurance Quotes.
Why Do You Need It?
1. It Is The Law
Auto insurance is mandatory in almost every state of the US. Driving without a policy could actually land you in jail depending on the circumstances.
2. It Protects Your Property
What would happen if your brand new car is stolen? Well, it would be replaced if you bought the right type of policy for you. Otherwise, you would have to find a way of paying off your outstanding loan while moving about on foot. The same applies if your vehicle was vandalized or broken into. You will get help from your insurer and get your vehicle in perfect order without having to run around. The common sense here is that you pay a little to protect something bigger.
3. It Protects Your Investment
What happens if you are found liable in an accident and are expected to pay compensations for damages? If you are found to be without insurance then your case would be worse. But that’s NOT what we are even looking at. Without a policy to protect you, smart lawyers can easily pounce on your assets. This is to make sure compensations due to their clients are paid in full.
Finally, while you will be covered by law if you go for the minimum stipulated by your state, it is very important to check your peculiar circumstance to determine what’s best for you. You may even need additional policies just to ensure you are adequately covered. If that’s the case then it is worth every dime spent — You won’t be exposing yourself or loved ones to avoidable risks.