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Auto Insurance Basics

You will see more cars on the road each year. As this number goes up, the possibility of accidents also goes up. If you get in a car accident, the auto insurance you have can make a big difference in how much you have to pay. But why is insurance important and just how much do you need? Mandated coverage varies based on the state/province but usually includes the following: Liability: This kind of insurance coverage can pay for the damage that you are responsible for. These damages might include personal injury, and property damage. It can also cover your defense and court costs if you are sued. Local laws usually mandate minimum amounts of liability insurance, but higher amounts can be purchased and are usually recommended. Personal Injury Protection: This type of insurance pays for all medical treatment for you and your passengers, no matter who was at fault in the accident. It is required in some states and optional in others. It can also pay for lost earnings, service replacement and funeral expenses. Local law usually sets minimum amounts. Medical Payments: Medical payment coverage is available in states that are not considered no-fault and will pay regardless of who is responsible for an accident. All reasonable medical or funeral expenses will be paid for under this insurance coverage. Collision: Damages that occur from a car accident will be paid for under this kind of insurance. Comprehensive: Applies if your car is stolen or damaged by causes other than an accident, including weather damage or vandalism. Uninsured Motorist: If you are in an accident with a driver without insurance, this type of insurance coverage will make sure you are covered. Under-Insured Motorist: Pays for damages when a driver with insurance is injured in an accident caused by another person who does not have the right amount of insurance to pay for the full cost of the damages. Other types of coverage, such as car rental and emergency road service, are also available. Auto Insurance Clermont