5 Things To Know About Auto Insurance

Most of us do everything we can when we get into our vehicles to be safe and protect ourselves, our passengers, and others around us. However, even extremely safe drivers can end up in an accident. You could make a small mistake, encounter terrible road conditions, or deal with unsafe or aggressive drivers around you. And, when a vehicle accident happens, car insurance is necessary to protect you from paying for everything out of pocket.

If you’re a new driver, you might have questions about car insurance, including how it works and the different options. Even for people who have been driving for a while, the process can be confusing when looking for a new insurance provider.

Here are some key things everyone should know about vehicle insurance.

1. There are two main kinds of auto insurance

When choosing an insurance plan, you’ll need to decide what kind of coverage you want. The most common choice covers any damage that you inflict. This option is called liability insurance. So, if you cause an accident, liability insurance will protect the other people involved and their vehicles or property.

The other main kind of auto insurance will protect you, your passengers, and your vehicle. This coverage is called comprehensive or collision insurance. In this case, if you cause the accident, your insurance will also pay to cover your vehicle and medical payments for you and your passengers.

2. People driving a car without insurance are doing so illegally

Some people don’t realize that the law requires you to have automobile insurance. Because vehicles are heavy and potentially dangerous, insurance is necessary to keep people in the community protected. So, not having insurance could cost you a lot of money and even get you in some legal trouble.

3. Your insurance premium depends on many factors

Each company has its calculations and prices, but most look at the same overall elements. They’ll assess the make, model, and year of your car. They will also look at your driving record to see if you’re generally a good driver. The auto insurance company might also consider factors such as age, gender, marital status, location, and credit score.

4. If you get in a wreck, determining who is at fault is critical

If you’re ever in a vehicle accident, it’s important to have the police come to the scene and gather a report. These reports will determine whether your insurance is responsible for the damages or the other person’s insurance.

Not only is this generally the legal route to take, but it’s also how insurance companies determine who is at fault for the accident. So, never forget to make sure to get a police report following an accident.

5. Most insurance companies cover your vehicle, not the driver

Basically, this means that if you get in a wreck while driving someone else’s car, their insurance will apply. On the same token, if someone else drives your vehicle, your insurance will likely be responsible for paying for any damages if that person causes a wreck.

The insurance generally follows the specific vehicle, not the person who owns the policy. If you let someone else drive your car, you will be responsible if they get into an accident. This means you could be implicated in any illegal activity or have to pay to damage your own vehicle if you don’t have comprehensive insurance.

Auto insurance is vital for everyone who owns a vehicle. While laws for auto insurance vary from state to state, and each company is different, there are some overall things you should know. But, always reach out to professionals for advice.