The Basics of Auto Insurance
Auto insurance is required by most states in the United States. That means if you live in a state that requires this coverage, you will be penalized if you don’t have it. You have several options when it comes to coverage, but basic coverage includes liability, collision and comprehensive.
In most cases, you must at least have liability coverage if nothing else. Liability is beneficial because it pays certain expenses when you are at fault in an accident with someone else. For example, if you hit the car in front of you, your liability coverage will pay for the damage to the other vehicle. Liability would also cover the driver and their passengers if they sustain injuries.
Collision coverage offers a bit more than liability. This coverage pays for damages to your car following an accident. You will have to pay a deductible, so choose one you can afford. If you have a $300 deductible, and you need vehicle repairs, then you would be responsible for the first $300 of expenses. After that, the insurance company will pay the remainder up to its limits.
A popular choice is comprehensive coverage. This coverage pays for damages caused by accidents and many other situations. For instance, damage from hail and storms is covered under comprehensive. Windshield repair and replacement is covered as well. This coverage also helps if your vehicle is stolen or if your vehicle is vandalized.
You can’t afford to not have auto insurance. The financial help is beneficial, and your state might require coverage. If you can’t afford the most expensive coverage, then liability is good too.