Auto Insurance Overview

Auto insurance is extremely important to have when owning a car. It is usually required by law and you can sustain not only major monetary losses by not having it, but legal trouble as well. Insurance will normally cover your vehicle, another vehicle if the accident was your fault, property damage as a result of an accident, and medical claims by you or another party involved. Each policy is different and may exclude one or many of the aforementioned coverages so please consult a licensed auto insurance agent for the details of your policy.

The most basic coverage available is liability. Liability coverage is relatively inexpensive and covers you and/or family members when they are driving your car or other cars with the owner's permission. It also includes people who are driving your car with your permission. Liability will usually cover legal fees for your defense, emergency care for others involved, and the cost of bail bonds. It also covers property damage, bodily injury to others involved, medical services, loss of income, and death.

In addition to liability insurance collision and/or comprehensive insurance can be purchased to cover your investment in your vehicle. Collision covers repairs to your car in the case of an accident with another vehicle or inanimate object. Comprehensive insurance covers damage to your vehicle not caused by a collision, in most cases including theft, fire, candalism, explosions, and natural disasters.

NEXT TOPIC: "Considerations when buying "