How Auto Insurance Protects You
Auto insurance is a type of policy that financially protects you should you cause an accident while driving. Having liability insurance is required of car owners. Liability covers the bodily injury and property damage you cause others should you cause an accident, up to the limits on the policy.
Uninsured motorist is a coverage you can add to your auto insurance policy. This coverage protects you should you be hit by an uninsured or underinsured driver. Another coverage you can add is medical payments or personal injury protection. This covers bodily damage to the driver and passengers in the covered car if there is an accident.
Comprehensive and collision cover your car. These coverages are required if you have a loan or lease. Collision covers your car’s damage should you cause an accident, whether that’s hitting another car or something else. Comprehensive covers several types of incidents such as theft, vandalism, a tree falling on your car, fire, a flying rock and windshield damage. Comprehensive and collision coverage have deductibles. The deductible is the amount the policy owner pays before the insurance policy starts covering the damage.
There are several other coverages you can add to your auto insurance policy. Roadside assistance provides coverage should you need your car towed or need help on the side of the road, such as replacing a flat tire. Rental car reimbursement provides coverage should you have a claim with your insurance company and need to rent a car. If the other person caused the accident, their policy will cover the cost of renting a car.
People can buy gap coverage. This covers the difference between what their car is worth and how much they owe, should the car be totalled. If you drive for a ridesharing company, some insurance companies offer rideshare insurance so the gap is covered between your policy and the ridesharing firm’s commercial policy.
All drivers should have an auto insurance policy, especially as all US states require it. It protects you from potentially enormous bills should you be in an accident and so it is well worth the cost.