Any type of insurance coverage is good to have to ensure that you, your goods, property or businesses are protected. Insurance for you car or road vehicle is important to have for drivers anywhere in the United States. It is a requirement by law for a driver to have auto insurance before hitting the road or in some cases before buying a car from the dealership. If you are caught without auto insurance, you could lose your license, get fined or worse, get jail time. When in an auto accident, a driver may encounter an uninsured driver. He/she may or may not have caused the accident but if they have the proper coverage their car damage could be paid for based on the auto insurance policy.
There are different types of auto insurance
that is needed and in some cases there are special types of insurance depending
on what state the policy holder lives in.
The most important auto insurance features of an auto insurance policy are:
Body Injury Liability
These three features are important to have in auto coverage and would be considered as full coverage.
Collision covers damage to the owners' car when in an accident. This coverage will cover the cost of any expense for repairs or money towards a replacement of the damaged car. When the car is "totaled out," that means the car was damaged beyond repair. This coverage usually has a deductable that is agreed upon when the policyholder initially buys the insurance policy. The higher your deductible, the less you have to pay at the time of need.
Body Injury Liability covers medical cost for the other driver or individual involved in the accident. This covers a partial amount of the medical bills and is not required to pay the bills in full. In some instances the coverage amount covers about 1/3 of the medical bills and all other expenses are paid by the individual's medical insurance or out of pocket. This is not required by law to have but it is a wise choice to include in the policy when purchasing.
Property damage covers the damage to the other party's vehicle. In an event that the other car has significant damage, this feature would cover the damage if the accident is caused by the policyholder. The terms and conditions of this specific coverage is elaborated in the insured's policy.
Another type of coverage that is good to have but not necessarily a requirement is Uninsured Motorists coverage. This coverage covers the policyholder's vehicle in the event the vehicle is hit by another driver without insurance. However, in most states, it is almost imperative and may be required by law for all drivers on the road to have Liability Insurance or an SR22.
When shopping around for auto insurance you want to know the features you that you need and an affordable price at which to get it, so you can select the right policy that covers you for all occasions.