Automobile Insurance Basics

There are more cars hitting the road each year. As this number goes up, the chances of a car collision will also increase. The difference between a small aggravation and major pain can be the car insurance you have purchased. So how do you know what insurance you need and the quantity you should purchase? Car accidents can result in a variety of different expenses, which can all be paid for based on the insurance policy you have purchased. Deciding to drive without owning insurance could mean you have to repair or replace a stolen or damaged vehicle and pay the cost of any damage that you may have caused. Liability: Liability pays for expenses due to bodily injury and damage to property for which you are responsible. Bodily injury damages include medical fees, lost wages, and pain and suffering. Property damage includes damaged property or loss of property use. It can also cover your legal fees if you are sued. Local laws usually mandate minimum amounts, but larger amounts are available and very beneficial. Personal Injury Protection: This is required in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. This insurance can also pay for lost wages, service replacement and funeral costs. The minimum amount of this insurance is typically set by the state. Medical Payments: This type of coverage can be purchased in non-no-fault states and will pay no matter who is responsible for the accident. All reasonable medical or funeral expenses will be paid for under this insurance coverage. Collision: Damages that occur from a collision will be paid for under this type of insurance. Comprehensive: Cover your car from all non-collision damages when you buy this type of insurance. This includes protection from theft, vandalism, and weather damage. Uninsured Motorist: Pays for repair and replacement costs when an insured person is in a crash caused by a driver who does not have liability coverage. Under-Insured Motorist: Pays for damages when an insured person is in a crash caused by a driver who does not have the right amount of insurance to pay for the total amount of the damages. Other policies, including car rental, are also available. Your car insurance payments varies based on the company and will depend on multiple factors, such as: * What coverage you select * The type of the car you drive * Whether or not you have been in an accident * Your age, sex and marital status * The place where you live Many people consider car insurance to be a necessary evil, but it can rescue your finances. Evaluate your needs, do your research , and with the support of your insurance agent, choose the option that best suits you. State Farm Clermont