Car Insurance Basics

You will see more and more drivers on the road every year. This could lead to an increased likelihood of a collision. If you get in a car accident, the car insurance you have can make a large difference in the experience you have. How can you decide what insurance you require and where you should go to buy it? Auto insurance protects you by covering the cost of damage caused to your vehicle or another person's vehicle and injury to other people, yourself, or your passengers, plus certain other situations, such as burglary. Your state or province definitely mandates some type of car insurance. Electing to drive without insurance could mean you have to repair or replace a stolen or damaged vehicle and pay the cost of any damage for which you might be responsible. Liability: This type of insurance coverage can pay for the damage that you are responsible for. These damages can include personal injury, and property damage. It can also cover your defense and court costs if you are sued. Recommended, higher levels of insurance can be purchased that take care of more than the lower, state-mandated varieties. Personal Injury Protection: Personal injury insurance is mandated in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. It can also cover lost wages, service replacement and funeral expenses. The minimum amount of this insurance is usually set by local government. Medical Payments: This type of coverage can be purchased in non-no-fault states and will pay regardless of who is responsible for an accident. This insurance will pay for all insured person's necessary medical and funeral expenses resulting from an accident. Collision: Damages resulting from a collision will be paid for under this type of car insurance. Comprehensive: This applies if your vehicle is stolen or damaged by causes other than a wreck, including fire, wind, hail, flood or vandalism. Uninsured Motorist: If you are hit by a driver without insurance or a hit-and-run driver, this type of insurance coverage will make sure you are covered. Under-Insured Motorist: Similar to uninsured motorist protection, this type of insurance covers you from drivers without sufficient insurance coverage. Other types of car insurance, including car rental, are also available. Your auto insurance payments varies based on the company and will depend on multiple factors, including: *Your desired coverage *Your vehicle's make and model * Your driving record * Your age, sex and marital status * The place where you live Don't wait around to buy car insurance; you shouldn't be on the road without it. Review your needs, research your options, and with the support of your insurance agency, make the decision that best suits you. State Farm Agent Clermont