How Does Auto Insurance Work?

We see more cars on the road every year. With countless vehicles on the road, crashes can happen. Car insurance can be the difference between a minor setback and a major hassle. How can you decide what type of insurance you require and where you should go to buy it? Car crashes can lead to a variety of different expenses, which can all be paid for based on the type of coverage you own. Auto insurance is required by state law. By not owning insurance, you run the risk of having to pay the full cost of any harm you cause others. Liability: Liability pays for damages due to personal injury and property damage to others that you have caused. Bodily injury damages include medical expenses, and lost wages. Property damage includes damaged property and loss of use of property. It can also cover your legal fees if you are sued. Local laws usually require minimum amounts of liability insurance, but larger amounts can be purchased and are extremely helpful. Personal Injury Protection: Personal injury protection pays for all medical treatment for you or other people in your car, regardless of who was at fault in the accident. It is required in some states and optional in others. Local law usually sets minimum amounts. Medical Payments: This coverage can be purchased in non-no-fault states; it pays regardless of who carries responsibility for an accident. All necessary medical or funeral expenses will be paid for under this type of coverage. Collision: This pays for damages to your vehicle caused by a collision. Comprehensive: This type of insurance covers all non-collision damages. This may include hail damage, vandalism, and burglary. Uninsured Motorist: This pays for damages when an insured person is injured in a crash caused by a driver who does not have insurance. Under-Insured Motorist: Just like uninsured coverage, this type of insurance protects you against people driving without enough insurance protection. Other types of coverage, such as emergency road service, are also available. State Farm Clermont