Why You Need Auto Insurance?

More cars and drivers are getting hit on the highways as the population continues to grow. Crashes are considered inevitable with so many vehicles on the road. The difference between a minor inconvenience and a major hassle can make up the automobile insurance. But what is the real reason you need insurance and just how much are you supposed to buy?

Having car insurance is a legal requirement and with the right level of cover, provides financial protection in the event of your vehicle being damaged. Cover for injuries to other drivers, passengers or pedestrians and their property are also being provided. Auto insurance is required by law in all states and protects you by paying for damage or injury you cause others while driving your car; damage to your car or injury to you or your passengers in your car from a crash; and certain other occurrences such as theft and vandalism. You risk having to pay the full cost of any harm you cause others with your vehicle without insurance.

Coverage requirements vary by state, but usually include the following:

Liability: Damages due to bodily injury and property damage to others for which you are responsible, are paid up. Medical expenses, lost wages and pain and suffering can be included in bodily injury damages. Damaged property and loss of use of property can be included in property damages. Even though higher amounts are available and usually recommended but state laws usually mandate minimum amounts.

Personal Injury Protection: In many states this is required. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. Lost earnings, replacement of services and funeral expenses might also be paid. State law usually sets minimum required amounts.

Medical Payments: This coverage is available in some states (usually the states without no-fault insurance), and pays regardless of who may have been at fault. It pays for an insured person’s reasonable and necessary medical and funeral expenses for bodily injury from a crash.

Collision: This pays for damage to your car caused by collision.

Comprehensive: Damage to your car caused by “Other Than Collision”, including fire, wind, hail, vandalism and animal strikes, are being paid.

Uninsured Motorist: This pays damages when an insured person is injured in a crash caused by another person who does not have liability insurance or by a hit and run driver.

Underinsured Motorist: This pays damages when an insured person is injured in a crash caused by another person who does not have enough liability insurance to cover the full amount of the damages.

There are several factors on which the auto insurance premiums vary widely from company to company, which include the following:

What coverage’s you select: It takes into account the make and model of the car that you drive, your driving record, your age, sex, and marital status and where you live.

Auto insurance is a necessary evil that can save your financial well being, as being thought by many people. Do your research, evaluate your needs and make the decision that best suits you.

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