How Does Automobile Insurance Work?

Every year, more cars and drivers are on the roads. As this number goes up, the chances of a car collision will also increase. Car insurance can make the difference between a small setback and a major hassle. But why do you need insurance and just how much should you buy? Car insurance provides you with protection from paying for damage caused to your car or someone else's car and injury to others, yourself, or your passengers, plus specific other occurrences, such as robbery. Every state or province mandates auto insurance by law. Electing to drive without owning insurance could cause you to repair or replace a stolen or damaged vehicle and pay the cost of any damage for which you might be responsible. Liability: Bodily injury and property damage that you have caused will be covered under liability insurance. Bodily injury damages include medical fees, and lost wages. Property damage can refer to damaged property or loss of property use. It also covers your legal fees if you are sued. Local laws usually require standard amounts, but larger amounts are available and extremely helpful. Personal Injury Protection: Personal injury protection pays for hospital bills and other medical treatment for you and your passengers, regardless of who was responsible for the crash. It is required in some states and optional in others. It can also pay for lost wages, service replacement and funeral costs. Local government usually sets minimum amounts. Medical Payments: This type of coverage is available in non-no-fault states and will pay no matter who is responsible for the accident. This insurance will pay for an insured person's reasonable medical and funeral expenses resulting from a crash. Collision: Pays for damages to your car caused by an accident. Comprehensive: Applies if your car is stolen or damaged by something other than an accident, including fire, wind, hail, flood or vandalism. Uninsured Motorist: Pays for damages when someone with insurance is injured in a crash caused by a driver who does not have liability coverage. Under-Insured Motorist: Many drivers have liability insurance that might not be able to pay for all the expenses they are supposed to take care of. This type of insurance protects you from those drivers. Other types of car insurance, including emergency road service and car rental, are also available. What you pay for car insurance varies by company and will depend on multiple factors, such as: *Your selected coverage *Your vehicle's make and model * Whether or not you have been in an accident * Your age, sex and marital status * The place where you live Don't procrastinate buying auto insurance; you should never drive a car without it. Review your needs, do your research , and with the guidance of your insurance agent, choose the option that best suits you. State Farm Agent Clermont

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