Car Insurance Basics

There are more cars hitting the road each year. This could lead to a higher possibility of a collision for you and your family. Car insurance can be the difference between a minor inconvenience and a large trial. So how can you figure out which type of insurance you need and how much you should buy? Your insurance may be able to pay for the expenses from a car crash ranging from car repairs to legal fees. Every state and province mandates auto insurance by law. Electing to drive without insurance could cause you to repair or replace a stolen or damaged vehicle or pay the cost of all the damage that you may have caused. Liability: Liability pays for expenses due to personal injury and property damage to others for which you are responsible. Damages from bodily injury can include medical expenses, and lost wages. Property damage can refer to car repair costs and loss of property use. If you are sued, liability insurance will pay for your court costs. State laws typically require minimum amounts of liability insurance, but higher amounts are available and usually recommended. Personal Injury Protection: Personal injury protection pays for hospital bills and other medical treatment for you or your passengers, regardless of who was responsible for the collision. It is sometimes referred to as no-fault coverage. It can also pay for lost wages, replacement of services and funeral expenses. State government typically sets minimum amounts. Medical Payments: This type of coverage is available in non-no-fault states and will pay no matter who is responsible for the accident. All necessary medical or funeral expenses will be paid for under this insurance policy. Collision: Damages resulting from a collision will be paid for under this type of insurance. Comprehensive: Applies if your car is stolen or damaged by something other than a wreck, including fire, wind, hail, flood or vandalism. Uninsured Motorist: If you are hit by an uninsured driver or a hit-and-run driver, this type of insurance coverage will protect you. Under-Insured Motorist: There are other drivers who have liability insurance that might not be able to pay for all the expenses they are responsible for. Under-insured motorist coverage protects you from those drivers. Emergency road service, car rental, and other varieties of car insurance can also be purchased. Auto Insurance Clermont

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