Insurance is for safety of the driver and the passengers in the car. Everyone needs insurance to cover damages caused by various calamities that take place in everyday life. Insurance is made mandatory in almost all the states in the US. An automobile is a very useful mode of transport to a person and a family and it is important to maintain it in good condition to get efficient service from it. An automobile involved in an accident may require a large amount of money to bring it back into its formal shape or one may even have to replace it with a new one, not to mention the associated medical costs. So it is absolutely necessary for an automobile owner to have insurance cover for his vehicle. Moreover without auto insurance one cannot drive a car on US roads.
There are so many choices available on auto insurance. Before going for the insurance cover one must importantly understand the anatomy of auto owners insurance.
When an auto owner buys an insurance policy for the automobile, an agreement is worked out and a monthly premium or fee is charged by the insurance company. The company agrees to pay for fixing the damages caused to the vehicle, the medical expenses and property damage to other party arising out of an accident involving the insured vehicle.
The insured party will make a one-time payment known as a deductible, a pre-fixed amount, towards the cost incurred for fixing the damaged vehicle. This amount remains static, irrespective of what the insurance company pays for the damages inflicted on the car during the accident.
Different types of insurance cover for automobile are available and one should have a basic cover to drive a car in the US. The liability coverage, the commonest of them is the required insurance cover to drive a car legally. A predetermined basic amount will be compensated by the insurance company to cover the damage in case you hit another vehicle, something or somebody in an accident.
Other type of auto insurance cover is the comprehensive coverage and auto collision coverage, combined covers almost everything and is a must for new car owners. The insurance company provides the costs required for damage coverage after deducting the deductible amount which is pre-determined. The deductible amount remains the same where as the amount paid by the insurance company varies according to the total expenses occurred in fixing the car. The deductible amount is fixed at the time of insuring. If you agree to pay a large sum as deductible then the premium on your car insurance will be on the lower side and the premium goes up if the deductible is on the lesser side.
Get the various insurance quotes on the internet to choose the one most suited to you.
