As a driver, you may be required to purchase auto insurance by your state to be legal on the roads. The requirements
This is a common legal requirement in most states across the country, but each state has different car insurance requirements that local drivers must comply with. In addition, some drivers want to purchase more than the minimum amount of coverage required by law because of the benefits it provides. With a closer look at what car insurance is and how it benefits you, you may be able to make a better buying decision.
When you purchase auto insurance, you will need to choose between liability, collision and comprehensive coverage. Liability is the most common type of car insurance required by most states, and this coverage primarily protects other motorists. As a driver, you are financially liable for any damage you cause to others in your car, and this includes property damage, vehicle damage, and personal injury. Liability coverage pays others for the damage you cause, but you may still be personally liable for any expenses that exceed your coverage limits. With this in mind, some drivers will increase the amount of liability coverage they purchase.
Collision and comprehensive coverage, on the other hand, provide benefits to you as the driver and vehicle owner. In the event of a collision accident, collision coverage will pay for expenses to repair or replace the vehicle. Comprehensive coverage includes collision benefits as well as coverage for loss related to fire, theft, water events and more. You may also increase your coverage to include optional protection for personal injury, rental car reimbursement and more.
As you can see, you may face significant expenses if you are involved in an accident or if Mother Nature damages your vehicle, stolen by a thief and more. There are many types of events that you must consider when purchasing coverage, and you also should think about your financial abilities to pay by reviewing your assets. When you focus on these points, you can more easily purchase the right type of car insurance for your needs.