Understanding Auto Insurance
Most states in the US require vehicle operators to carry liability coverage, with only about 16% uninsured. Approximately 160,000,000 motorists are named on these insurance policies.
What is Auto Insurance?
This form of insurance protects people from catastrophic financial loss because of an accident while operating a motor vehicle. A licensed driver is most times required to purchase liability coverage. Two primary protections offered are bodily injury or death and property damage.
Bodily Injury Coverage
This portion of the insurance policy covers liability associated with the injuries to third parties in case an accident occurs. There is Uninsured Motorist Bodily injury, which covers the driver if the at-fault driver does not have liability insurance.
Property Damage Coverage
Property damage coverage protects those properties involved in the accident. This includes damage to another party’s car, personal property or real estate property.
Ther Types of Coverage
• Collision – Covers damage to the insured’s vehicle
• Comprehensive – Covers the insured’s car from theft and non-accident related damage
• Personal Injury – Covers the medical/funeral expense for the insured, passengers or third parties
To decide the right type and limit of insurance needed, each person needs to comply with state laws and determine the extent of protection needed and wanted, according to their budget.