Automobile insurance coverage is likely the most common form of insurance used by Americans. Just about all states mandate that you carry some minimum level of coverage and each state will normally have their own specific requirement criteria. As far as the individual who is shopping is concerned, the trick is determining the sweet spot between keeping within a budget and carrying the appropriate coverage for your needs. There are three basic kinds of car insurance coverage and they are a liability, collision, and comprehensive.
Good car insurance is for those who regularly drive a motor vehicle, whether it is for personal or commercial use. It safeguards both drivers and passengers from the financial consequences of accidents and compensates for damages that are caused either by you or other drivers, including damage to your car as well as injuries that happen to either you or the others.
For instance, should you be in involved in an auto accident and it is determined that you are not responsible for the damage or injury, you then proceed by filing a claim with your insurance provider in which you describe the accident details. Normally, you will be asked to provide details about you and your vehicle and the other driver’s information as well. So be sure to obtain from the other driver such details as his or her insurance company, driver’s license information, his or her car’s VIN and so on. If people are hurt, often times law enforcement will be called to the scene and will then file a police report.
However, if both parties are unhurt it will be your responsibility to obtain the aforementioned information, including photographic evidence and witnesses if possible, for submission to your insurance provider. Once the claim has filed an adjustor will pay you a visit to obtain his or her own photographs and take notes regarding your vehicle so as to determine the full extent of the damage. The insurance provider will then normally handle payment for repair or vehicle replacement if it is totaled.
The following are three main coverage aspects:
This kind of coverage is what protects should you be found to be at fault for an accident. It compensates for any medical costs for you and the other driver and any property damage as well.
This coverage pays for damage to your car resulting from collisions regardless of fault. In addition to the normally required liability coverage, this is required by banks and credit unions for those who have a loan on their vehicle.
• Comprehensive Coverage
This coverage, basically, will pay for anything other than damage resulting from collisions, including theft, vandalism, or when nature causes damage to your car, such as hail. This is often mandated by institutions providing loans as well.
It’s often a terrific idea to carry auto insurance so that you can meet legal obligations, satisfy the requirements of a loan and just be generally protected from the consequences of an accident. It protects you from the negligence of other people too and that is certainly important given the fact that many may not be as attentive to automobile safety as you are.