Motor vehicle insurance is quite simply an insurance policy acquired for trucks, cars, motor cycles and other vehicles. Basically, it protects you from losses in the event that you get in a traffic accident and all liabilities arising from it.
In most states of the United States, motor vehicle insurance with liability coverage for bodily injury and property damage is compulsory. Penalties for not having insurance vary depending on which state you are in, but it usually involves a stiff fine, revocation or suspension of registration and license, and incarceration. Some states require insurance to have a vehicle insured, or to issue a driver's license.
However, more than meeting legal requirements, having motor vehicle insurance affords you the peace of mind. The peace of mind that no matter what happens, you will have the money to protect yourself and your family from a damaging liability arising out of an unfortunate accident. Accidents do and may happen anytime, no matter how careful we are on the road. The fact is, in these trying times, all it takes is just one accident and you could be on the way to bankruptcy.
Your car may also get stolen no matter where you park or whatever safety devices you install. If you are living from paycheck to paycheck, and your car gets stolen, you would be hard-pressed to replace that car. Much more if you use your vehicle for your business or livelihood!
To make sure you are adequately covered, it is vital to know about the different types of motor vehicle insurance. This includes:
- Comprehensive cover: Coverage includes accidental damage, theft, bodily and property damage.
- Liability coverage: Pays for damage you cause to other people and/or their properties in an accident. Liability coverage also protects you when you get sued after an accident.
- Collision coverage: Covers the damage your car gets in an accident
- Medical coverage: Pays for medical expenses for you and your passengers.
The amount and extent of coverage you need would depend on where you are. If you think you need more than the minimum state requirements, then it is good to talk to your insurance agent about it.
Having motor vehicle insurance makes it legal for you to drive your car and gives you fitful sleep at night, would that mean a hefty price to pay? No, not really! These types of insurance are actually very cost efficient if you factor in the possibilities and the advantage you get from having adequate cover. What is more, there are several ways to drive down the cost of your insurance premiums.
So what are you waiting for, get that motor vehicle insurance today!