Irmo Auto Insurance Experts
What is Auto Insurance?
Driving a car, let alone having one, is one of the luxuries of life not everyone can afford. Not only does it costs a lot to buy one, but it also increases the chances of getting into car accidents, and mind you, they are easy to come across. Nonetheless, there is a way to be secure in spite of unavoidable events, and that is through having auto insurance.
Auto insurance is a kind of insurance where the owner enters into a contract with an insurance company. The former agrees to pay a premium or the payment for the services to be rendered by the insurance company, while the latter pays for the damages acquired after a certain unfortunate event. Premiums vary depending on the coverage of the insurance policy and other services that the insurance company provides. The higher the premium you pay, the wider the coverage you will receive.
There are different kinds of coverage and some are required depending on the state. The most common kinds auto insurance coverage are as follows:
- Liability coverage – a lot of states require this kind of coverage since this is the most basic one. Liability coverage covers the expenses you will have to pay once it is proven that the car accident was your fault. It is two-fold because it accounts for bodily injury and property damage. In other words, this pays for your medical bills when you end up getting injured and the repairs needed for your car.
- Collision coverage – this insurance is similar to liability coverage. The main difference is that the car accident should be caused by a collision with another vehicle, hence the name. The insurance company will answer to your car’s damages and if it is brand new, it could buy you a new car as if nothing happened. On the other hand, if it is old, your car might not be allowed to get collision coverage. Moreover, when the repairs to your car are more expensive than the car itself, the insurance company will only pay for the original value of your car.
- Comprehensive coverage – based on its name, comprehensive coverage compensates for the damages to your car that is caused by anything except car collision. This includes accidents from bad weather, animals, falling trees, and the like. This also covers theft. Comprehensive coverage is optional in a lot of states and it is quite expensive.
- Uninsured or Underinsured Motorist coverage – this insurance coverage protects you from those who do not have auto insurance or their insurance is not enough to pay off the repairs to your car or your medical bills.
Although basic auto insurance is required in a lot of states, it is most often the case where there are people who cannot afford to get insured or whose states have a low coverage amount that cannot remunerate all the damages. This is relatively reasonably priced and can save you the inconvenience of paying for a larger amount in case of accidents.
- Personal Insurance Protection (PIP) – like some auto insurance coverage, PIP pays for your medical bills. However, this is not limited to your medical bills, but it also includes the medical expenses of the people who were in your car during the accident.
Another difference of PIP to others is that it does not matter whether it was your fault or. It already automatically answers for any damage.
These auto insurance coverages vary depending on the state you are in or the state where you bought the car. They can be required or not, expensive or not, necessary to you or not. Even so, what is even more important is the purpose they serve and why you should get them in the first place.
Accidents are unforeseeable events and even the safest drivers in the world can never run away from it. And so auto insurance exists to save you from the cost of paying for medical bills and vehicle repairs and even the inconvenience. But, there is another reason, one of responsibility. When it is your fault and not anyone else’s, the cost of paying the injured or inconvenienced person is much higher. You would have to answer for all the damages regardless of the cost. What if at that time you cannot afford it or the costs are too high for you to pay alone? Your auto insurance might just save you from that awful situation and so it is best for you to get coverage right away.