Auto insurance is a necessity
Every state but New Hampshire requires drivers to have some level of auto insurance to protect people on the road in case of property damage and injury. But even without a legal requirement, carrying insurance for your car is a good idea.
What is it?
Automobile insurance is a type of insurance that protects you and/or other drivers, pedestrians, bicyclists and others from incidents that happen on the road.
Who is it for?
Auto insurance is for anyone who drives a car. Even if you don’t own a car, you need insurance if you drive. Car insurance typically follows the driver, not the car.
How does it work?
The way automobile insurance works depends on what type of insurance you have. If you have liability insurance, it will pay for damage to other cars or property in an accident that you cause. Other types of insurance will cover your car and injuries you and your passengers sustain.
Types of coverage
Liability insurance, which covers damages and injuries to other drivers, is the minimum coverage required in nearly all the states. Collision insurance is a type of insurance that will cover damages to your car caused in a crash that aren’t covered by another driver’s insurance. Comprehensive coverage pays for damage to your car not caused by a crash with another vehicle, such as fire or hail damage. If you have a loan on your car, the lender will likely require collision and comprehensive coverage. Other types of coverage include uninsured motorist, which pays for your damages if the other driver is uninsured, and personal injury protections, which pays for medical costs for your and your passengers if necessary.
The biggest benefit of having automobile insurance is that you can pay for damages to your car and damages to other cars you might have caused without much effort. With insurance, you pay very little out of your own pocket, and the insurance company picks up the rest. An accident without insurance could be very expensive, and if you cause injuries to another driver, you could be sued and wind up bankrupt. Having insurance prevents that from happening.