Auto insurance provides coverages and a legal defense for you in the event that you are involved in a car accident. Whether or not you are the at fault driver, auto insurance works to protect you and damage to your car. State laws require that autos be insured with a minimum amount of liability coverage in order to be licensed. If your car is not owned outright, a lender will require you to carry insurance to cover damages to the car in the event of an accident.
Being involved in an accident (or being cited for a violation) may affect your rates. Rates increases can be dependent on the circumstances of the accident, as well the frequency in which accidents occur per year. A series of at fault accidents or moving violations may cause your rates to increase. Keeping a clean driving record and making sure you do not have any outstanding violations can help to keep your insurance rates lower.
If you are involved in a serious accident and it is determined that you are the at fault driver, the damages can easily exceed the minimum amount the law requires. Having higher coverage could be helpful if someone is killed or seriously injured in an accident or if the car other car is a total loss. Should your limits not be sufficient to cover a loss, the amount that exceeds the limit may come from your personal assets. It is important to keep this in mind when you are trying to decide what type of coverage you need.
There are many aspects to think about before purchasing a new car. One aspect of making a purchase, such as a new car, is to think about what it will cost to insure your vehicle. It may be helpful to see what types of auto insurances options you have and how much it will cost to insure your new vehicle. You should factor the cost of auto insurance into the purchase of your new car before making a final decision.
There are a number of different coverages you may consider when looking at auto insurance quotes. Quotes can be provided for uninsured and underinsured motorists. This means that if you are in an accident with someone who does not have auto insurance or has lower policy limits that yours, you may be able to be covered by the policy that you hold. If you are in an accident, you may need a rental car. There are different options of coverage that can provide you with a rental car while your car is being repaired. Another type of coverage auto insurance can provide is medical payments. This could be useful if a passenger in your vehicle is injured by an accident, and you are required to reimburse them for their injuries.