How Does Car Insurance Work?

The number of cars on the road increases every year. With countless vehicles on the road, crashes are going to happen. If you get in a car accident, the car insurance you own can make a big difference in what happens next. But why do you need to own insurance and just how much should you purchase? Your car insurance may be able to pay for car crash expenses ranging from hospital bills to replacement costs. Your state or province definitely mandates some type of car insurance. Making the decision to drive without owning insurance could mean you have to repair or replace a stolen or damaged vehicle or pay the cost of any damage that you may have caused. Liability: Personal injury and property damage that you have caused will be covered under liability insurance. Bodily injury damages include medical expenses, and lost wages. Property damage can refer to damaged property or loss of use of property. If you are sued, it also pays your legal fees. State laws typically mandate standard amounts of liability insurance, but larger amounts are available and very beneficial. Personal Injury Protection: Personal injury protection pays for hospital bills and other medical treatment for you or other people in your car, regardless of who was responsible for the accident. It is occasionally called no-fault coverage. This insurance may also pay for lost earnings, replacement of services and funeral costs. The minimum amount of this insurance is typically set by local government. Medical Payments: Medical payment coverage can be purchased in states that are not considered no-fault; it will pay despite who may be responsible. If this policy is purchased, the insured person will receive coverage for all types of medical or funeral costs. Collision: This pays for damages to your car caused by an accident. Comprehensive: Protect your car from all non-collision damages by purchasing this type of coverage. This may include protection from burglary, vandalism, and fire or flood damage. Uninsured Motorist: Thousands of drivers are breaking the law by driving a car without purchasing the proper amount of car insurance. This type of coverage will protect you if one of these irresponsible drivers hit you. Under-Insured Motorist: This pays for collision expenses when a driver with insurance is in a crash caused by another person who does not have enough liability insurance to pay for the total cost of the damages. Emergency road service, car rental, and other types of car insurance can also be purchased. State Farm Agent Clermont

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