Auto Insurance as your Financial Shield


In life, there are no guarantees. We can never be sure about anything, for even if we can control our actions, we can never control other’s actions. But what we can do is to somehow prepare for an event that can possibly happen in the future. This premise describes the concept of insurance, which is why it has evolved from the simple types to the more complex ones. But there are basic types of insurance that became a necessity to people that even the government mandates it. One of these is auto insurance.

Auto insurance is an agreement between you and your insurance company that you will pay for a premium and in any unfortunate event happens, the company will pay for the damages. The specifications of the coverage will also be agreed upon and will be put in writing to your insurance policy. In the US, most states oblige drivers to avail of minimum coverage for auto insurance. But they have the option to upgrade their coverage so that they will have greater protection.

No matter how careful a driver is, he can never control the behavior and attitude of the other drivers in the road, which exposes him to accident risks each time he hits the road. With auto insurance, he can never be free of accident but he can prepare for future expenses that are costly if ever it happens.  If your avail of auto insurance, you can be paid for crash injuries, car repairs and stolen cars. But if you choose a full coverage, you can enjoy other helpful benefits.

Some insurance companies even pay for transportation if you can’t use your car if it is still undergoing repair. The coverage may also be extended to other drivers who live with the policy holder with or without his permission to drive the car. Extended plans protect policy holder other than what are usually included in most insurance policies. An example would be claims when a car is damaged due to forces of nature like earthquakes, floods due to storms or other natural calamities. Auto insurance generally protects the car, the driver and the passenger financially.

When we talk of auto insurance, we think about protection. We can have financial assistance on our medical bills, car repairs or if the car is lost. But we must also be aware about deductibles, which are fixed amounts of contribution prior to receiving claims.

There are hidden truths about the concept of auto insurance that one may not be aware of. This is driving responsibly. This is true not just because most insurance companies base premium charges on the driving history of the driver, but also on the consciousness it results to each driver that he must really be careful when hitting the road to avoid any damage or accident for even if he is insured, he can still accountable for any accident that resulted from his negligence and road misconduct. But other drivers make an extra effort of driving carefully not just to avoid accidents and hassles in life, but also to earn lower premiums if he consistently keeps a good track record in driving.