What is Car Insurance and why do I need it?

The purpose of car insurance is to safeguard you and fellow road users from expensive accident-related costs and injuries. It involves paying a specific amount, known as a "premium," to your insurance provider in return for a selection of coverages that you select. The majority of states mandate that individuals must possess car insurance when they own a vehicle, however, the specific requirements for minimum coverage and policy limits differ. If you purchase or rent your car, your lender may also ask for certain types of insurance. Aside from meeting legal obligations, it is wise to have car insurance. If you are at fault for a collision, you could be required to pay for costs like fixing vehicles, property damage, medical expenses, income lost, lawyer fees, and additional expenses. Your financial stability could be in danger if you don't have the right insurance coverage. 

What is covered by car insurance?

The coverage options you select will determine the outcome. Since most states mandate bodily injury and property damage liability insurance, your policy must include coverage for vehicle and property damage as well as injury-related expenses for others in an accident you cause, meeting the minimum limits set by the state. You and your vehicle may not receive automatic protection from the minimum coverage requirements.

Who needs to be on my insurance policy?

 Any person that drives the vehicle regularly, especially if they live in the same household as you. Policies occassionally protect other liscensed drivers that use the car, i.e. friends while traveling on a road trip, extended family, significant others.

 What is a deductible and how does it affect my rates?

The sum you must pay for towards covered losses before your insurance kicks in is known as your car insurance deductible. If the deductible is lower, you will have to pay less money from your own pocket in case of an incident. For instance, selecting a $1,000 car insurance deductible means that if your car incurs $2,000 in damages from a covered loss, you would need to cover the initial $1,000. Choosing a larger deductible could reduce your auto insurance cost. However, it is crucial to select a deductible that is within your means in case of a loss.