Do you have a car? Do you know what will happen if you get in an accident? Are you prepared to pay for any repairs to your car, another person’s car or potential hospital bills out-of-pocket? If you own a car, you can’t predict any accidents but you can provide yourself with financial protection with the right auto insurance.
In most states throughout the country, auto insurance is required when owning a car. This is because auto insurance provides protection should you get into an accident, if you car is damaged.
What does auto insurance cover?
Auto liability insurance provides coverage for costs you are legally required to pay if you cause an accident, injury or property damage. If you are uninsured or underinsured, the costs associated with an injured party’s liability claim will come out of your pocket.
When purchasing insurance, the amount of coverage you purchase is up to you, but note that trying to pay as little as possible is short-sighted and can potentially drain your bank account. It’s generally recommend that your coverage includes a minimum of $100,000 of bodily injury protection and $300,000 per accident.
If you’ve financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.