What is Auto Insurance?
And why you need itAuto insurance is essentially a contract between you and the insurance company. It protects you against financial loss in the event of theft or an accident. The insurance company agrees to pay for losses outlined in your specific policy in exchange for your paying a premium.
Auto Insurance Basics
Types of Insurance| Common Insurance Type | Coverage | Other benefits | Limits |
|---|---|---|---|
| Liability Only | Required by law. Bodily injury and/or property damage. | Advisable to cover more than state’s minimum requirements. | Each state sets coverage limits. |
| Uninsured and Underinsured Motorist | Your medical expense caused by uninsured driver. | Prevents out-of-pocket expense if at-fault driver is uninsured. | Not all states require this coverage. |
| Comprehensive | Theft, vandalism, fire, natural disasters, falling objects, animals, civil disturbance. | Separate from collision deductible, but more peace of mind. | Optional unless required by lender. You set deductible. Damage to your or other’s car, and your medical expense not covered. |
| Collision | Collision with other vehicle, object, or single car accident. | Helps pay to repair or replace car. | Choose deductible. Limit is usually cash value of vehicle. |
| Medical Payments | Health deductibles and co-pays, doctor, hospital, surgery, emergency fees. | Optional, but prevents out-op-pocket expense. | Limit is maximum amount your insurer will pay. |
| Personal Injury | Medical expenses, lost wages, substitute services, funeral expenses | May help pay medical bills not covered by health insurance, regardless of who’s at fault. | Does not cover damage to vehicle, theft, property, medical expense that exceed limit |
Who needs Auto Insurance?
The short answer is everyone should have auto insurance. Auto insurance is required by law in most states. Having insurance ensures that you are financially responsible for damages you may cause. Premiums are paid to have damages covered should you face a claim against you.
What type of Auto Insurance should I get?
Liability insurance is required by law in almost every state. It helps pay for damage you may cause. However, the majority of people also opt for additional coverage. It’s a good idea to have enough insurance to protect you and your loved ones from financial ruin if in a car accident. Our agents can walk you through the process to determine the best plan for you.
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Frequently Asked Questions
At InsurancePlans, we offer insurance plans of all kinds. This includes Medicare, health, life, auto, and home.
Each family has a very specific lifestyle and income. InsurancePlans instantly shops and compares rates for you to find the coverage that best fits your unique needs and budget.
We can help you find insurance plans of all kinds. We represent many top-rated insurance companies. You can be sure to find the plan that matches your unique need.
InsurancePlans is your one stop for medical coverage. The difference is that it’s our top priority to give you peace of mind that you and your family are protected.
InsurancePlans is not an insurance company. We shop some of the most trusted insurance companies on your behalf, making the process simple and convenient.