Affordable Car Insurance Fast

Car Insurance Basics

When you own a car or other vehicle that you drive on public roads and highways, you need to have car insurance. When buying car insurance, many people do not read the policy or consider what type of coverage they have purchased. There are even some car owners who do not even bother to buy car insurance because they do not want to pay the monthly premiums. However, there are many consequences that can occur if you do not buy car insurance or if you do not acquire sufficient coverage. To better understand car insurance, below is a guide on car insurance.

What is Car Insurance?

Car Insurance BasicsCar insurance is a contract between you and your car insurance provider. It is designed to protect you against financial loss if you are involved in an accident. With car insurance, you agree to pay the premium plus a deductible and the insurance provider agrees to provide financial compensation as outlined in your specific policy. Car insurance provides liability, property, and medical coverage. Liability coverage provides financial compensation for your legal responsibility to others for property damage or bodily injury. Property coverage provides compensation for theft or damage to your car. Medical coverage covers the costs of medical treatment, rehabilitation, and sometimes funeral expenses and loss of income.

Why do we need Car Insurance?

Most states mandate that you purchase minimum car insurance coverage. If you are leasing a car or getting a loan, many lenders will mandate that you purchase car insurance. If you're financing a car, your lender may also have requirements. You also need auto insurance to make sure you do not go bankrupt if you are liable for an accident. If you do not acquire enough coverage to ensure complete protection in the event of an accident, you could still be on the hook for an enormous amount of money, especially if someone files a lawsuit.

What happens if you are not covered?

In most States, the law mandates that you have car insurance. If you are caught without car insurance, consequences can include: hefty fines, loss of your license, vehicle seizure, and even jail time. The costs of medical treatment for victims of an accident can be very expensive and can often run into tens of thousands of dollars of which you will have to pay if you are found liable for an accident. The minimum amount of coverage mandated by states is often not enough to cover all medical expenses. Without proper insurance coverage, if your unintentional actions cause injury or death or cause property damage, you could end up losing all of your assets.

The highways and roads can be dangerous therefore car insurance is a “must-have” for anyone who wants to drive a vehicle. As well as being the law, it is important to have enough coverage to ensure you are completely protected if you are in an accident, especially if you are found at-fault for the accident.

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