The Ins and Outs of Car Insurance
If you are like most people in this country, you drive a car. Of course many don’t own one and, indeed, that does not change the fact that you will need to have automobile insurance coverage at one level or another. This kind of coverage is designed to protect the driver, not the automobile.
Car insurance is a form of property and casualty coverage that compensates the policyholder for any covered damage or other loss caused to another’s property or person and, with the more comprehensive offerings, damage caused to your own car.
Car insurance is meant for any and all who get behind the wheel. It matters not if you own the vehicle or if you simply are driving someone else’s car, the fact remains that in all states it is mandated at some level.
How your car insurance policy serves you will vary with the level of coverage you own and, of course, who is at fault in any incident. Regardless of fault, one should always report an accident as soon as possible. Often, if the accident is minor, police will not visit the scene of the accident. However it is still incumbent upon you to report it and to certainly contact your insurance representative as well. If you are the one at fault, then your insurance provider will work out a settlement with the other driver’s insurance company. If you have full coverage, your insurance company will also compensate you for the damage to your own vehicle as well, minus the deductible you first must pay. Should the other driver be at fault, then the other insurance company will pay for the damages you incurred.
There are many varieties of coverage for your vehicle. The most common obtained is liability, which is generally the kind of coverage that is mandated by law. Liability coverage pays for damage that you cause to others resulting from an accident in which you are deemed at fault. Collision coverage is optional and pays for the damage to your own vehicle not covered by the other driver’s insurance. Comprehensive compensates for damages to your car resulting from anything outside of a collision. Examples include fire, vandalism, theft or weather related damage. Other kinds of coverage include uninsured/underinsured motorist and personal injury.
The big plus in purchasing good car insurance is that you can enjoy the peace of mind in knowing that you are safeguarded from the financial ramifications of being at fault for an accident. Additionally, with more comprehensive coverage, your car can be repaired or replaced if it is damaged no matter if the other driver’s insurance is responsible to pay for it. In other words, insurance has your back.