Car Insurance Overview
Whether the car you are driving is borrowed from a friend or is your own ride, the fact remains that you are legally mandated to carry at least a minimum level of auto insurance. This is necessary to protect not just yourself but others behind the wheel from the consequences of auto accidents. Keep in mind that there are various options with car insurance that extend beyond liability protection and into safeguarding policyholders from a myriad of perils and incidents beyond driving.
A car insurance policy is distinguished from most other kinds of insurance coverage in that auto policies are mainly designed to protect other motorists against property damage and injuries for which you would be at fault. Of course, there are other coverage components available that can, for instance, provide protection for your own vehicle as well, regardless of fault.
Good car insurance benefits a driver regardless of whether the driver owns the car he or she operates. When driving a borrowed car, the car owner’s coverage usually covers the vehicle, but keep in mind it will not cover the driver. Everyone needs their own coverage or they should walk or take a bus.
How it works
Though policy coverage varies, car insurance can protect you and your vehicle as well as others on the road. Should you find yourself involved in an accident, one of the first things you should do is get in touch with your insurance provider. Once the details of the accident have been investigated, the insurance company will determine the policyholder’s liability and then compensate accordingly. The amount tendered will be up to the limit stated in your policy less the deductible that the policyholder is expected to first pay.
Kinds of coverage available
There is a myriad of coverage types for auto insurance. Liability is the coverage that provides payments for the damage that you as the driver cause to other property, such as another vehicle or a stationary object and for any injuries for which you are at fault. This component of coverage is legally mandated in just about every state. Collision coverage is what pays out for damage to your own vehicle as a result of a crash for which another driver’s insurance will not cover. Comprehensive coverage pays for damage to your car that is the result of anything other than a crash, such as hail or even vandalism. These two previously mentioned forms of coverage will come with a deductible. Other kinds of coverage include personal injury and uninsured/underinsured motorist coverage.
A big plus in carrying quality auto insurance is the liability protection it affords you. This is what can help you to avoid any financially disastrous out-of-pocket payments for an accident for which you are deemed at fault. If you also carry collision and comprehensive coverage, another plus is the valuable protection it provides you for damages to your vehicle that arise from other sources.