What is auto insurance?
Auto insurance policies are purchased to minimize the personal financial impact associated with motor vehicle accidents, or other incidents, that may affect automobiles you own and drive. Risks and financical liability associated with automobile ownership include medical expenses for injured persons, property damages associcated with repair of vehicles involved in an accident, as well as non-accident damages that may result from storms, theft, vandalism or natural disaster. Insurance companies provide auto insurance through personal auto policies. A personal auto policy is a contract between you and your insurer, specifying each party's rights and obligations. Essentially, your insurer promises to provide specific coverage to you in exchange for your payment of specified premiums.
Why do you need it?
All states require you to be financially responsible when driving a car. Depending on your state, you may be required to purchase auto insurance or post a bond. State law (and/or your lender) generally specifies the minimum coverage amounts for auto insurance. You may find it prudent to purchase greater coverage, however, in order to protect your auto investment, pay for necessary medical expenses, cover your legal liability, and cover any additional losses related to automobile ownership. driving. For instance, if you cause an accident that results in damages over and above the limits of your insurance policy, your personal assets and future earnings may be put at risk.
When to get it
You may need to purchase auto insurance whenever you buy a new or used car. You may also need to reconsider your present policy if your family situation changes. Because marital status, number of children, and asset levels may change over time, you should review existing policies from time to time to ensure adequate coverage.
Information About Automobile Insurance Policies
Automobile insurance policies offer numerous types and amounts of coverage, depending upon an individual’s needs. Although there are numerous variations of automobile insurance coverage and amounts, automobile policies generally offer four areas of coverage: Liability, Medical Payments, Uninsured and/or Underinsured Motorists, and Coverage for Physical Damage to Your Vehicle.
As with most insurance products, automobile insurance policies are comprised and purchased based on each individual’s needs. There are specific exclusions, provisions, and limitations to each type and amount of coverage defined in individual automobile policies. Also, endorsements can be added in order to customize individual automobile insurance coverage.
Automobile insurance premiums are written on an individual basis with an individual’s personal statistics taken into account to determine the cost of the policy. Key factors associated with automobile insurance premiums include:
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