Why do we need car insurance?
In most states, it is illegal to drive without insurance. If you own a car and wish to drive it, you will most likely need automobile insurance. Having auto insurance is more than just protecting your vehicle, it is having about having peace of mind from your worst nightmares like a bad accident, car-jacking, as well as possible bodily injuries and fatalities.
What is auto insurance?
Auto insurance is a contract between you and your insurance company in which an agreement is established where you, the client, pays the insurance premium, and in exchange the insurance company agrees to reimburse you for any losses covered by the insurance policy.
Auto Insurance coverage includes:
Bodily Injury Liability which covers anyone injured by the policy holder
Medical Payment coverage which pays for medical costs incurred by a car accident
Property Damage Liability pays for damages you caused to another driver's car. It includes other objects that may have been damaged by your car such as fences, telephone booths, lamp posts, etc...
Collision Coverage pays for damages to policy holder's car as a result of a collision, even if you, the driver, is at fault for the accident.
Comprehensive Coverage will pay you for the loss due to damage by fire, explosion, vandalism, flood, contact with animals, and theft.
Uninsured and Underinsured Motorist Coverage reimburses you in case you are hit by an uninsured or when you are involved in a hit-and-run. It is also very valuable in case where a pedestrian is hit during an accident.