What to know about car insurance
If you drive a car, even if you don’t own your own car, you need to have auto insurance. An auto policy can protect you against damage caused by an accident and, depending on the type of policy, from weather and other sources.
What is it?
Car insurance involves coverage both for property and liability. All auto policies provide liability coverage that will pay for damage and injuries you cause in an accident that’s your fault, and many policies provide additional coverage for damage or injuries caused to you and your passengers.
Who is it for?
Anyone who owns a car needs to insure it, but people who don’t own cars but drive either regularly or occasionally also should carry a policy. Though the car owner’s insurance may cover other drivers, it’s a good idea to carry your own coverage as a driver.
How does it work?
An auto policy works much like any other kind of policy. If you are in an accident or sustain damage to your car in another way, you need to file a claim with your insurer. Your insurer will determine if the event was covered and, if so, how much money you are entitled to minus your deductible. Your insurer then will either pay you a settlement check or direct you to get repair estimates and submit them.
Different types of coverage
There are several different types of auto insurance policies. Liability insurance will pay for damage and injuries you cause to others in an accident, and it is the minimum amount of coverage required in most states. Collision insurance pays for damage caused to your car in a crash that’s not covered by another driver’s insurance. Comprehensive insurance covers non-crash-related damage such as hail damage or fire damage. Other coverage includes personal injury protection and uninsured motorist insurance.
The main benefits of having car insurance include liability protection to cover you for an accident that is your fault and coverage for your own vehicle in case it is damaged in either an accident or some other event.