Auto Insurance

What is it, and why do I need it?

Every state in the U.S. mandates that drivers obtain a minimum amount of auto liability insurance coverage. This, of course, is not just to comply with the law but to protect yourself and other drivers as well.

As a form of property and casualty insurance, auto insurance coverage protects not just your vehicle and other cars, but other kinds of property too, should there be an auto accident or some other kind of event that results in damage and/or injuries.

Auto coverage is designed for all who drive. Keep in mind that, the coverage actually follows the vehicle as opposed to the driver. Should you, for example, borrow someone’s car, it’s the norm for their insurance to be primary coverage for damages caused while you are behind the wheel.

Explaining the coverage

Automobile insurance works similarly to other kinds of property and casualty insurance. Should one be involved in an accident or suffer damage resulting from another covered issue, like a powerful storm event, it is required that the policyholder contact his or her insurance company to submit a claim. Next, an adjuster will visit and proceed to evaluate the damage and determine whether the claim is valid. If all goes well, the insurance company will allow for compensation to get the vehicle either fixed or replaced. Should a policyholder inflict damage upon another person’s property, his or her insurer will then contact the other individual or insurer to work out payment for the damage.

Liability coverage is what covers damages you cause to other people or their property in the event of an accident. Other usual types of car insurance coverage include collision, which helps to protect your car from damage resulting from a colliding with an object and comprehensive, which is what handles damage that does not result from a crash, like storm damage, theft or even vandalism. There is personal injury protection, which compensates for medical bills from a crash that goes beyond the car insurance policy limits.

The major result of having good auto insurance is the peace of mind in knowing that one is complying with the law and being financially protected from a loss that’s caused by an accident.

  • Liability Coverage
    Coverage for bodily injury or property damage to others for which you are held liable (as provided by your policy and state law)
  • Comprehensive Coverage
    Coverage for damage to your vehicle not caused by collision or upset (subject to deductible). Examples may include theft, vandalism, weather events and contact with animals.
  • Collision Coverage
    Coverage for damage to your vehicle resulting from a collision with another vehicle or object (subject to deductible).
  • Medpay Coverage
    Coverage for reasonable medical expenses to you and others in the event of an accident, regardless of who is at fault. In your policy, this may be referred to as medical expenses or medical benefits.