Car insurance is not really something that we can go without these days, and it can often times be a tricky thing to understand. The best thing to do when looking at car insurance options is to know what it is exactly and why you need it. Then you can worry about coverage and finding cheap car insurance.
Why Do We Need It?
Drivers need car insurance for a variety of reasons. Though the requirements differ from state to state, it is common law that drivers must carry proof of some type of auto insurance in order to drive. Aside from the legal requirements attached to it, car insurance is necessary because it protects the driver from financial and legal obligation when an accident occurs. Depending on the accident, as well as the type of insurance you have, it may cover the expenses of both you and the other party.
Types of Coverage
There are three general coverage categories offered with any auto insurance policy. The first is property coverage, with pays for any damage inflicted on the car or the possibility of the car being stolen. The second type of auto insurance coverage is liability coverage. This covers other drivers against physical injury or property damage in the case of an accident involving another party. The last type of coverage is medical coverage, which pays the cost of treatment, rehabilitation, and occasionally lost wages and funeral expenses due to an accident. It is very important that you know the specifics of your policy.
Though all states require auto insurance, plans and coverage requirements differ for each state, so it is best to contact the state department of insurance or do some research before legally committing to an auto insurance plan. It is not only a good thing to have for legal reasons, but it also offers piece of mind.