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Basic Information about Auto Insurance and Coverage


Each state in the US has its own laws about car insurance, and drivers such as yourself are not only highly encouraged to know about these laws but also have the required coverage for protection in case accidents happen. This way, you would know if there are any additional or optional insurance contracts you need before you take to the road.

You need to take note of several factors before you go to an automobile insurance office and purchase some coverage. Some of these factors include what kind of car you drive, the number of road accidents you have been involved in, and the status of your driving record. Other factors also affect the price of the coverage such as the probability of theft and vandalism in your neighbourhood. Keep these things in mind so you know what insurance policy or plan to get that would best suit your situation and purpose.

Also, you need to have a good understanding of the different car insurance policies and automobile coverage that automobile insurance companies offer to drivers like you. Depending on what state you live in, you would be required to have certain types insurance. You would also have the option of purchasing more coverage id it fits your needs.

Here are some of the different types of auto insurance:

  • Liability coverage – this type of coverage comes into effect when there is a third party involved who were injured or had their property damaged. Medical expenses would be covered, as well as lost wages that the injured hadn’t been able to earn if he/she is injured enough to be unable to work. While property damages includes that of the third party’s vehicle involved and anything else that they own.
  • Collision coverage – this type of coverage is used for when your vehicle had been damaged by colliding with another car or object.
  • Comprehensive coverage – this type of coverage covers and pays for damages inflicted upon your vehicle that is not the cause of car accidents (e.g. fire, flood, theft, vandalism).

There is also a personal injury protect or PIP that is required in some states. In case you have been injured due to a car accident and is insured, your medical expenses would be covered and paid for.

For your own protection and safety on the road, it is best that you take note and know about the different types of insurance policies that are available to you. Know what you need and know how much you could afford, so you would be able to have the right amount of auto coverage you need when you are driving in the streets.