Auto insurance is financial coverage of an motor that protects the
driver from having to pay out of pocket for any damages caused by
traffic accident, theft, or other vehicle damage. Car insurance is the
law in the United States. It is purchased for all motor vehicles
including cars, trucks, and motercyles. The driver pays a monthly
payment called a "premium". This premium goes to the auto insurance
company and they agree to cover the expenses that could be incurred in
a traffic accident. This money is used to pay for the damage to the
insured vehicle, the proper that is damaged in the accident, and the
other vehicle damaged as well.
The amount you pay for premiums really depends in the state you
live in and their particular requirements. Some states may not even
allow you to get a license without proof of insurance. It's important
to do research about what your particular state requires.
Auto insurance is broken down into several levels and types. We will discuss four of them.
type of auto insurance is "liability" coverage. Liability is the most
basic type of auto insurance and required in all auto insurance.
.Liability coverage only pays for the physical injury, property or
vehicle damage that the driver is directly responsible for.
Another type of auto insurance is "collision". Collision covers all
damage directly relationed to an auto accident. This includes the
vehicle itself, and/or physical injury of the driver or passengers as a
result of the accident.
"Comprehensive" coverage is financial coverage of motor vehicles in
case of damage caused by incidents other than a traffic accident. That
includes fire, theft, vandalism, and in some cases, weather damage.
"Full Coverage" is the combination of liability, comprehensive, and coverage.
are several other types of auto insurance as well. It's important to do
lots of reasearch and be familiar with the insurance laws in your
As with most auto insurance, you gernally have to pay what is call
a "deductible". A deductible is a set, agreed upon amount you have to
pay before your insurance coverage kicks in the case of an accident.
Generally, the insurance rate of males is higher than that of
females. That's because statistically, there are more males involved in
accidents than females. As with any decision, always do your research
and become familiar with the laws in your state. Happy driving!