Auto insurance is a product you can purchase if you drive or own a car, and most states require car insurance for all drivers. When you buy a policy, you can choose the coverage you have and the levels of coverage. One essential thing to know is that car insurance not only protects you and your car, but it also protects other drivers. If you do not understand how car insurance protects you and others, you should know a few things.
How Auto Insurance Protects Others
The basic form of coverage offered through auto insurance is liability protection. Do you know what this is? If you do not understand what liability protection is, you will likely have questions about how insurance protects others. Liability protection is to protect other drivers. If you ever collide with a person and are responsible for the accident, your liability protection pays for the other person's damages. Liability covers other people; it does not cover you. Your liability protection is the coverage your policy includes to protect other people.
How Auto Insurance Protects You
Next, you can add protection to your policy to cover you, and you can choose from several coverage types. The first type is collision coverage, which protects your vehicle if you cause a collision. Collision pays for the repairs your car needs after you cause an accident that leaves your vehicle damaged. Your policy can also include comprehensive coverage, which protects you from damages that result from things other than collisions. Comprehensive pays the repairs if your car gets damaged from a storm, hail, or vandalism. If you carry these coverage types, you protect yourself and your investment in your vehicle.
One more thing to know is that even though liability coverage protects others, it also protects you. If you have liability coverage, a person you collide with cannot sue you personally for your assets. If you did not have liability coverage when you caused an accident, the victim could sue you. Therefore, liability coverage protects you and others.
Having liability coverage is typically necessary, whereas having the other coverage types might be optional for you. If you owe money on your car, your lender might require collision and comprehensive coverages.
How to Get the Right Coverage for Your Needs
Now that you understand how auto insurance protects you and others, you can buy a policy that offers the protection you need. If you need a policy, contact an auto insurance agent today.