Auto Insurance: Why You Need One
Anyone who has spent time on a road knows that it can be a dangerous place. Cars, pedestrians, farm equipment and more all compete for space and attention.
To make matters worse, many drivers don’t know when or how to protect themselves from the danger of driving. That’s why you need accident insurance.
While some might think that auto insurance is unnecessary because cars are so safe today. Even the most basic car can have hidden dangers from faulty brakes to faulty steering sensors.
These malfunctions could cause an otherwise minor crash to turn into something much more severe something that your regular car insurance won’t cover (although this is changing in many cases).
However, there are ways to minimize the impact of a collision on your finances, even if you do have an accident.
Those who have an accident while they are under their auto insurance will be able to claim compensation through their injury protection plan (which offers coverage for hospital bills and other medical expenses).
Their collision coverage (which provides compensation for damage to your car caused by another vehicle).
However, if you don’t have any of these protections, you could end up paying much more than necessary in the long term if you get into an accident.
In this article, we’ll explore what kind of auto insurance you need as well as how it can protect you against financial ruin if things go wrong.
What Is Collision Insurance?
If you hit another car head-on, your car insurance will likely only cover the damage to your car – not the damage to the other car.
In that case, the person you hit may decide to sue you for the money they spent fixing their car.
This is where collision insurance comes in. This type of insurance covers the cost of repairing or replacing the other car, regardless of who is at fault.
There are two types of collision coverage: comprehensive and collision. Comprehensive coverage will cover your car in case of damage due to fire or theft.
It also covers both your car’s and the other car’s repairs arising from a collision.
Collision coverage only covers the cost of repairing the other car, no matter who caused the collision. If you hit another car that was parked on the side of the road, this is all you would get.
Comprehensive Coverage
As the name suggests, comprehensive coverage protects against physical damage to your car, including the car’s paint job, interior, and even the tires.
It usually costs less than collision coverage and is more likely to be included in your auto insurance policy.
Roadside Assistance & Towing
If you are involved in an auto accident that causes significant damage to your car, but you are not at fault, you may be entitled to receive some monetary aid from your auto insurance company.
This could include having a tow truck come to your home and pick up your car, as well as having a paramedic assess your injuries.
Collision coverage provides some assistance in these situations, but it only covers the damage to your car and is not enough to cover major repairs to other cars.
To ensure you receive the aid you are entitled to, you will want to purchase additional roadside assistance coverage.
PIP Coverage
PIP coverage is a type of medical expense coverage that will cover certain medical costs if you are injured in an accident. It is usually provided as part of your auto insurance policy, so make sure you have it.
PIP coverage typically only kicks in if you are at fault in an accident. That means that even if you are injured in a car accident. You could still be required to pay some of the medical costs if you are not adequately covered by your auto insurance.
This coverage will help offset some of those costs, so it is worth keeping on your auto insurance policy.
Uninsured Motorist Coverage
If you get into an accident with an uninsured driver, you will likely want to claim your collision coverage.
However, if that driver does not have insurance, you cannot claim your collision coverage. Instead, you will have to rely on your auto insurance to cover the damage to your car and any other medical costs resulting from the accident.
That way, even if you have an accident with an uninsured driver, you are still protected. This is important because even if you have uninsured motorist coverage on your auto insurance, it may not cover the entire amount of the damage to your car if the other driver is uninsured.
Other Things You Need Auto Insurance For
– The cost of a repair if your car is totaled in an accident.
– The cost of a rental car if you are required to get a rental car due to an accident.
– Temporary roadblocks that cause traffic delays.
– Legal fees if you are sued for an accident.
Understanding Auto Insurance Rates
Auto insurance is a complicated topic that generally does not come up during a typical auto insurance quote for a new car. The good news is that you don’t need to understand it all to get the best deal on your policy.
All you need to know is how to shop for rates. The first step to finding the best rates is to decide what kind of coverage you want. In other words, do you want full coverage or is it okay if you have an accident and your insurance only covers your car?
Once you determine what kind of coverage you want, you can compare different companies’ rates. You can do this by using a website like the insurance comparison website Insure.com. This will help you find out which companies have the best price based on what you need.
The Best Ways to Save on Auto Insurance
You can do a few things to get the best possible deal on your car insurance. The first and most important thing is to make sure you are adequately covered.
Auto insurance companies are very aware of how few people have collision coverage, so make sure you are getting that coverage. Get a free auto insurance quote from more than one company and comparison shop on the internet.
This will help you get a better idea of what companies offer the best deals. Make sure you get your policy from the company with the lowest rates. There may be some discounts that apply to customers who call in their policy, so make sure to call in your policy.
Summary
Auto insurance is crucial financial protection against the dangers of driving. However, it is important to understand the different types of coverage available and how they can protect you in a car accident.
In addition, you will want to make sure you are adequately covered in the event of an accident, that you are comparing rates across multiple companies and that you are getting your policy from the company with the lowest rates.
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