What you need to know about auto insurance
Life is full of things you have to do, whether you like it or not. One of them is to purchase auto insurance if you own and drive a car.
Auto insurance not only helps protect you from unexpected medical and repair costs due to a car accident, it can help shield you from the financial uncertainty of accident-related lawsuits. In many states, it's also the law.
But how much insurance do you need? A good place to start is by determining what is required in your state. Often referred to as the "Financial Responsibility Limit," this is the bare minimum amount of coverage you need to have to legally be on the road.
Most states require you to carry liability insurance, which will cover accident-related bodily injury and/or property damage costs incurred by the other party. Beyond the law, car insurance is a powerful tool that can help protect you, your family and your hard-earned assets. In addition to liability coverage, it's a good idea to also carry the following:
* Medical payments coverage - This will pay for any reasonable and necessary medical bills for you and the people in your vehicle.
* Underinsured/uninsured motorist coverage - This provides you with coverage if a driver with little or no insurance damages your car, or injures you or someone riding with you.
* Collision coverage - This option helps protect you from repair costs to your car if you're involved in a covered accident that involves other cars or objects, like a tree or a streetlight.
* Comprehensive coverage - This option helps protect your car in covered situations that don't necessarily involve other drivers or vehicles, such as damage caused by storms or natural disasters, vandalism, theft, a broken window or windshield, hitting an animal or if something falls on your car.
Additional coverage options worth considering include personal injury protection (PIP), which helps reimburse you for income continuation, loss of services, funeral expenses and child-care expenses; towing- and labor-cost coverage which will help with the cost of repairs; and rental car reimbursement coverage which will provide you with a set of wheels while your vehicle is being repaired.
Once you've decided what kind of coverage you want, it's easy to price a policy online, where you can obtain free car insurance quotes.
Courtesy of ARAcontent