Auto Insurance

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Auto Insurance

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Why do you need car insurance?

Almost every state requires some kind of auto insurance — but do you know why? Having auto insurance is a great benefit to you and protects you in many ways:

  • Protects your vehicle investment.
  • Protects you against medical expenses after an accident.
  • Protects you against damages from a lawsuit.
  • Protects you from uninsured or underinsured motorists.
  • Protects you from expenses for repairs due to things like theft, vandalism or other disasters.
  • Bonus: It provides peace of mind every time you hit the road.

Car Insurance Terms

Car Damage Coverage
Car damage coverage is covering the physical damage to your vehicle if you get into an auto accident.

Deductible
A car insurance deductible is the amount you’ll pay out of pocket before your insurance company kicks in to cover a claim.

Liability
Car insurance liability is what you’re responsible for in the event of an accident. This includes bodily injury liability, which covers injuries to others and protection if you’re sued, and property damage liability, which covers damage to someone else’s property, like a mailbox or car.

Limit
A coverage limit is the maximum dollar amount your insurer will pay out for a specific type of coverage on your policy.

Premium
Your car insurance premium is the amount of money you pay to your insurance company for your policy.

Full Coverage
Though there is no such thing as “full coverage,” it’s a common term used to describe the amount of auto insurance coverage someone has, and typically implies that the policy has at least liability, comprehensive and collision coverage.

Coverage

Comprehensive
Comprehensive car insurance covers damage caused by accidents that don’t involve colliding with another vehicle or object. That means this type of smart coverage, minus the cost of your comprehensive deductible, pays for damage caused by things like:

  • Theft
  • Collisions with animals
  • Vandalism
  • Fires or explosions
  • Hail or natural disasters
  • Certain falling objects
  • Floods

Collision
Collision insurance is an optional coverage that helps pay the cost of repairing or replacing your car after being damaged in an accident, whether it’s your fault or not. Usually, when you are involved in a covered accident, you’ll pay a collision insurance deductible, which is a set amount of money you will pay out-of-pocket prior to your insurance payment coverage. You choose a collision deductible when electing collision insurance coverage on your policy. Collisions involve anything from hitting another vehicle, to hitting an object, like a tree, guardrail or mailbox.

Collision insurance is a coverage that helps pay to repair or replace your car if it’s damaged in an accident, whether you caused the accident or not. You’ll also be covered from damages caused in accidents where no other car or object is involved — for example, a rollover caused by black ice.

Bodily Injury
If you’re legally liable for a car accident, bodily injury liability coverage helps cover costs associated with injuries to your passengers, the driver and passengers of the other vehicle. It also can help pay for bodily injury to pedestrians. If you are taken to court over an accident, bodily injury coverage can also help pay for legal fees.

What Does Bodily Injury Liability Cover?
If you’ve caused a car accident, your bodily injury liability coverage help