Auto insurance, also known as a car insurance, motor insurance, or vehicle insurance, is an agreement between you and an insurance company that can provide financial protection against physical damage or injury caused by traffic collisions, as well as from liability that could arise from incidents in a car.
Car Insurance Basics
Most states require auto insurance for drivers to protect themselves financially if there’s an accident. When you get auto insurance, you’ll select a policy that outlines the type of coverage and how much it costs. This can include bodily injury liability, property damage, comprehensive coverage, and collision coverage.
Getting the right auto insurance for your needs can be challenging, but it’s also important not to sign up for a policy that charges you for coverage you may not need. Knowing the basics of auto insurance can help you to make an informed decision about the policy that is right for you.
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To help you find the right balance of coverage at the lowest possible price, our team can help you make informed choices on policy options and then shop your policy with multiple insurers to make sure you get the lowest rates around. Call or click the quote button to get started – and remember, consultations are always free!
Auto or vehicle insurance is simply an agreement between an insurance company where you pay a premium, and they provide you with insurance coverage in the case of an accident. The premium you pay for insurance is based on several factors, including age, sex, driving record, miles you drive, type of car, and credit report, among others. Vehicle insurance policies offer several types of coverage.
Due to state laws, automobile insurance is required for anyone who drives an automobile, truck, van, etc., on the main road. While at one time it was an option, vehicle insurance is currently mandatory in all the states, although the limits and amounts vary by state.
When you take out an automobile insurance policy, you pay premiums monthly, bi-monthly, quarterly, or annually. In exchange for the premiums, you’re covered for certain limits of insurance. You’ll typically have a deductible, which is the amount you have to pay before the insurance company pays. For instance, if you have a $250 deductible and have repairs costing $2,000, the insurance company will pay the $1,750 after paying the $250.
Automobile insurance policies offer the following types of coverage.
Besides being a law, auto/vehicle insurance provides many benefits, including paying for repairs to your car, help with medical bills, and protection against lawsuits when you’re involved in an at-fault auto accident.