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Auto Insurance

A Primer on Car Insurance
Intro
If you have ever experienced a car accident, you can certainly understand the need for good car insurance protection for property loss and injury. In addition, attempting to drive a motor vehicle without automobile insurance coverage can also result in costly fines and other penalties.
Coverage Definition
Auto insurance is essentially an agreement between the insurance provider and the individual being covered that mandates he or she to be consistent with the monthly (or semi-annual) premium payments in return for compensation for any covered losses in the event of an accident or some other of a myriad of covered losses. As mentioned above, states require that drivers show financial responsibility and this is usually means carrying minimum basic coverage in order to drive.
Kinds of Coverage
The liability component of coverage, (some form of which is normally required by law), compensates for damages to other vehicles and property from an accident that is caused by you. Collision coverage pays out for any damage to your own vehicle from a crash, while comprehensive is what helps with a myriad of forms of loss that are the consequence of such things as weather, vandalism or theft. Simply put, this aspect will pay for damage to your auto caused by anything other than collisions.
Who Benefits?
All who drive a motor vehicle are required to buy, at the very least, liability coverage. If you have a loan on your car, the lender will also mandate that you not just liability but some level of collision and comprehensive coverage as well. Anyway, a car is no small investment for most folks so it seems logical to protect it and yourself regardless of any laws or mandates.
How it Works
If you are involved in an accident, you are then asked to file a claim as soon as possible with your insurance provider. If you’re the one at fault, your insurance company will take care of whatever damages that are covered by your policy. This takes effect after you have paid your previously agreed upon deductible. Of course, this is assuming that you have kept up on your premium payments too. If the other driver is found to be at fault, then his or her insurance company will pay out. Some important things to keep in mind when involved in an accident: Be sure to exchange information with the other drivers, find witnesses for supporting testimony, obtain photographs, etc. (Anything that can bolster your case should it be required.)
Big Benefits
This coverage helps keep the policyholder from being held financially responsible for potentially overwhelming out-of-pocket costs. Basically there are a couple of main benefits in buying good car insurance. First, this safeguards you from any financial loss you might suffer, along with the invaluable liability protection it provides. In obtaining a proper insurance plan, you can rest assured in knowing that you will be compensated for damage to property (including your vehicle) and, should you be at fault, that you will have the ability to pay for damages to another driver’s vehicle and any additional property damage that is the result of an accident.






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