Understanding Auto Insurance Basics

Everybody has to obtain auto insurance if they want to drive a vehicle on a public road. Car Insurance is required by every state and is regulated at the state level. Each state will have it required coverage amount that each driver must meet to drive legally. The minimum coverage that you can obtain is liability coverage. Liability coverage is used to pay for the damages that you have done to another person’s property. The state decides what is considered the minimum liability coverage. If you are wondering how much coverage that is required in your state we recommend calling your current insurance company or agent to find that information.

After liability insurance follows collision coverage. This type of coverage protects the damages that have been done to your vehicle. The third type of coverage is comprehensive coverage. This type of coverage will protect your vehicle in case your vehicle experiences vandalism, theft, flood, hail, wind, and fire. This is also cover a certain amount of medical expenses incurred during an accident.

Many auto insurance providers will also give you several extra options that can be added on to the policy. Some of them include, under insured motorist, rental car, personal injury protection, etc. Under insured motorist coverage protect you in case you incur damages from a driver that does not have sufficient insurance to cover the damages or if you experience a hit and run. The rental car option will pay your rental car fees if you are without a vehicle because it is in the shop for some reason or another due to an insurance claim.