How Does Auto Insurance Work?

There are more cars and drivers hitting the road every year. With so many vehicles on the road, accidents are going to happen. Car insurance can make the difference between a minor inconvenience and a major hassle. But why do you need insurance and exactly how much should you buy? Mandated coverage varies based on the state/province but usually includes the following: Liability: Personal injury and property damage that you are responsible for will be covered under liability insurance. Bodily injury damages can include medical fees, lost wages, and pain and suffering. Property damage can refer to car repair costs and loss of use of property. It also covers your defense and court costs if you are sued. Recommended, higher levels of liability insurance can be purchased that cover more events than the lower, state-mandated varieties. Personal Injury Protection: This is mandated in some states and is optional in others. Sometimes referred to as no-fault coverage, this pays the medical treatment for you or your passengers regardless of who was at fault. The minimum amount of personal injury protection is usually set by the state. Medical Payments: This coverage can be purchased in states that are not considered no-fault; it pays regardless of who may have been at fault. If you buy this type of coverage, you will receive payment for necessary medical or funeral expenses. Collision: Damages that occur from a car accident will be covered under this kind of car insurance. Comprehensive: This kind of insurance protection covers all damages not caused by a collision. This may include hail damage, vandalism, and robbery. Uninsured Motorist: This pays for damages when someone with insurance is in an accident caused by a driver who does not have liability insurance or by a hit-and-run driver. Under-Insured Motorist: Just like uninsured motorist protection, this kind of insurance protects you against people driving without sufficient insurance coverage. Other policies, including car rental, are also available. Golf Cart Insurance Clermont