Hopefully everyone knows that you need to have automobile insurance if you have an automobile. This insurance provides many different types of protection, including the following:
- Pays for repairs if your automobile is damaged
- Pays you an amount equal to the value of your car if it is damaged beyond repair, or stolen
- Pays for repairs to other vehicles or structures if you damage them and you are found to be responsible
- Pays for medical assistance if you or passengers are injured while in your vehicle
The amounts and types of protection will depend on your specific insurance policy, and this is why it is essential that you know all about these different types of coverage.
What is an automobile insurance policy?
An automobile insurance policy is a contract between you and an insurance company. You pay a premium, and in exchange, the insurance company promises to pay for specific vehicle-related financial losses during the term of the policy.
Why do I need automobile insurance?
If the reasons given above weren't enough to convince you that you need insurance, there are three other important reasons:
- In some states, to drive (get license plates) you must carry a defined minimum amount of protection.
- In states where coverage isn't required, drivers must, by law, be able to pay the full cost of harm they may cause others. This could include repairing or replacing their vehicle, paying medical claims, paying for loss of income due to injury or disability, etc. Having insurance is the simplest way for most people to comply.
- If you take out a loan to purchase your vehicle, the lending institution will require that you have insurance as long as you owe on the loan.
Now that you understand the need for automobile insurance, it is time to make sure that you have the correct amounts and types of coverage for your situation. Using the links above (or below), you will follow a process that includes the following steps:
Begin with Step 1 - Locate your Policies