Car or auto insurance offers drivers financial liability and coverage for any damages they sustain or cause in an automobile accident. Anyone who owns and drives a vehicle is recommended to have coverage. Almost every state in the US, and even in other parts of the world, requires drivers to have minimum financial coverage and some even have laws that being insured is compulsory.
The average number of car accidents adds up to more than six million in a year, and that is in the United States alone. Most of these accidents are caused by drunk driving, careless behaviour, use of cellphone while driving, and many other factors. It is best for drivers and motorists to be insured, so they would be financially covered in case they find themselves caught in this sort of trouble on the road. Also, being insured means that car owners won’t have to pay additional expenses out of their own pockets in case an accident happens.
There are various kinds of coverages that insurance companies offer. Some of these coverages include:
This pays for bodily injury caused to the driver and property damage inflicted onto other people. Expenses covered here include medical expenses and lost wages. This also pays for defense and court costs, in case they are needed.
This pays for vehicle damage caused in an accident. Drivers and motorists who have their cars on a loan or lease are required to have this coverage until they could fully pay for their vehicle.
This coverage pays for damages caused by natural causes such as floods, fires, hail, vandalism, and theft. As with collision coverage, drivers who are still paying their car loan anre required to have this.
Uninsured Motorist coverage
In case the driver is caught in an accident caused by a driver without liability coverages, this would pay the damages to one’s vehicle. This coverage is mostly treated as optional in most states.
Underinsured Motorist coverage
When caught in an accident caused by a driver with insufficient liability coverages, this pays for the damages on one’s car. As with the uninsured motorist coverage, this is also treated as optional in some states.
Some of these are required by state law, while some are optional. Many drivers and motorists are encouraged to purchase more than the minimum coverage required by the state, so they would have some financial advantage and be reimbursed when the damage is done.