Auto Insurance

How Auto Insurance Helps

Good car insurance is a way to safeguard one’s financial investment in his or her transportation and to protect him or herself from the many potential financial pitfalls endemic in operating a motor vehicle. It is important to note, that in the vast majority of states, a licensed driver is mandated to carry liability coverage and, when carrying a loan, full coverage is also normally required by the lender. Of course, a driver can opt to add more helpful coverage to strengthen and widen their financial protections.
Policy premiums are usually billed monthly but often can be discounted with up-front payment for 6 or 12-month terms.

The insurance company will calculate one’s premium after investigating certain factors, such as the policyholder’s age, gender, driving history, details of the vehicle being driven, his or her zip code and more.

Types of Coverage

There is a myriad of kinds of auto insurance coverage. The coverage options chosen are what will protect you when an accident, theft, vandalism or other off-road damage occurs. The biggest plus in carrying a policy is the mitigation of potentially ruinous out-of-pocket costs a person would otherwise be forced to pay. In addition to vehicle repairs, coverage can handle medical bills and other costs as well.

The liability aspect of coverage, (which is normally required by law), pays for damages to other vehicles and property from an accident that is caused by you. Collision coverage compensates for any damage to your own vehicle from a crash, while comprehensive is what helps with many kinds of loss that are the result of such events and perils as weather, vandalism or theft. Simply stated, this coverage can pay for damage to your car caused by anything other than collisions. Personal injury protection (PIP) is a kind of protection that covers the driver should he or she be injured while driving.

It is wise to consider a combination of these coverage options to give you the most protection for your auto, truck, or SUV.