Why is Auto Insurance Important to You? / Why Should You Own Auto Insurance?
There is always a sense of urgency when it comes to getting your learner’s permit at the first breath of your 16th birthday or the feeling of satisfaction when you finally obtain it in your adult years, but with that feeling, comes a huge responsibility. Not only will you be in control of a 2-ton vehicle, you are also putting lives at danger if you don’t handle it with care.
Because unexpected accidents happen all the time and may be completely out of your control, the one thing you can do is be prepared for the repercussions of any misfortunes that may occur. One of those things is having proper auto insurance.
Auto insurance is crucial to have because it can protect you from financial burdens caused by things like accidents, thefts, or even fires. If you are at-fault for a collision and get sued by the other party, your auto insurance provider will protect you from all of those expenses. These accrued costs could add up to more than the average annual salary of a U.S. citizen, thus the monthly rates for being insured is immeasurable compared to any unforeseen (and costly) matter.
Most state laws require every driver to have auto insurance, although amounts and types of coverage vary. Depending on your location and the preceding patterns of drivers on the road, such previous records will usually determine the set regulations for that state.
Types of Auto Insurance Coverage in the United States
Liability Coverage: protects the insured driver when determined at-fault for an accident.
There are 2 options under the liability coverage umbrella – bodily injury (BI) and property damage (PD).
- Bodily Injury: covers for the damages for the victim such as medical bills, wage loss, and pain and suffering
- Property Damage: covers the damages of the vehicle, fence, tree, home, or any other possession of the victim involved in an accident
- Rental Coverage: typically has the same required limit amount as liability coverage in a policy. Most auto insurance plans include rental coverage. Although this may vary between companies so make sure to get verification on this.
Other Coverage Options:
- Collision: provides protection for cars involved in collisions. This coverage will pay for damages to the vehicle
- Comprehensive: provides protection for cars damaged in incidents that are not considered collisions such as fire, theft, vandalism, weather, etc.
- Uninsured/Underinsured Motorist Coverage: provides protection for an at-fault party does not carry car insurance or does not have enough insurance to cover damages
- Loss of Use: provides protection for reimbursement for rental expenses with having an insured vehicle repaired due to a covered loss
*Please note that there are other coverage options that are available. An extensive list could be found at any insurance company provider.
Now that you understand that auto insurance is crucial to have when living in the United States, you will benefit tremendously when caught in unexpected car incidents. If you are planning on purchasing new coverage policies or switching over companies for better rates, then acquiring insurance quotes is the best and fastest way to see the costs of your potentially new monthly premium. Every insurance provider offers different types of discounts and ways you can save money, so applying for insurance quotes is the easiest way to figure out which insurer will give you the best coverage at the best price.
Simply enter your zip code below to get started. You have nothing to lose and so much to gain, and who knows, in a matter of minutes you could save up to hundreds of dollars on your auto insurance policy.