For new drivers, people who haven’t driven in years, and even individuals who don’t think that auto insurance is relevant, this information explains why everyone needs it. Often, people feel confused when choosing a provider. Thankfully, State Farm insurance reviews are extremely helpful. They make side-by-side comparisons possible.
- Non-Insured Drivers
Most states require drivers to have auto insurance. However, some don’t. Regardless, drivers have the sole financial responsibility when operating an automobile on the road. In other words, in states where insurance isn’t required, an individual would still need to prove they can financially take care of any expenses associated with an accident.
Beyond insurance, that could include a bond or some other kind of authorized means. Simply put, non-insured drivers have to show that they can cover the expenses associated with injuries sustained by another party, as well as damage to that person’s vehicle. Keep in mind that every state does an annual audit. So, while one state might not require auto insurance this year, it could next year.
- Insured Drivers
Due to substantial financial risk, most people opt for auto insurance. In just about every state, a driver must have what’s called “bodily injury liability insurance.” That policy would cover the medical expenses of another party who suffered injuries as the result of a car accident.
Also, drivers must carry personal injury protection in line with their state’s no-fault laws. With this, the policy would cover the medical expenses of the driver who caused the accident. Along with that, most states mandate people to also have property damage liability insurance, which would cover the cost of repairing or replacing the vehicle of the party a driver hit.
- A Binding Contract
When you select auto insurance with a specific insurer, you lock into a binding contract. The policy you buy is what protects you against financial loss if you’re involved in a car accident or even a situation of theft. However, before the insurer processes your claim, you must pay the agreed-upon deductible. Usually, this ranges anywhere from $500 to $2,000.
The insurance policy you buy has three different types of protection. These include:
- Medical – That’s the cost of treating injuries and, in some instances, rehabilitation, lost wages, and funeral expenses.
- Property – This includes both damage to and theft of your vehicle.
- Liability – If you choose liability insurance instead of full coverage, the policy would only cover the medical expenses or damage to a vehicle of the party you hit. Simply put, it takes care of the other individual but not you.
- Who’s Covered?
Your auto insurance policy offers you protection, as well as any of your family members mentioned or authorized. Your policy protects you whether you’re driving your vehicle or one belonging to someone else, as long as you have their permission to do so. At the same time, it protects you if another individual drives your car with your permission, even if they’re not listed on the policy.
Here’s some important information. A personal auto insurance policy is for personal driving only. That means if you use your automobile for any type of commercial service, the policy won’t cover personal injury or property damage. A few examples include delivering pizza, floral delivery, or driving for Lyft or Uber. In those cases, you can purchase a supplemental policy from the same insurance company.
- Types of Auto Insurance Coverage
When it comes to auto insurance, you can select from several types of coverage. This is why sitting down with a reputable agent is so critical. That expert can discuss the pros and cons of each option and help you choose what best suits your needs.
- Full-Coverage – This policy is a combination of liability, comprehensive, and collision auto insurance. For one thing, it’s required for any financed automobiles. For another thing, it’s the type of policy people choose who drive newer vehicles.
- Comprehensive – This auto insurance offers protection against damage as the result of an incident outside of a collision. That includes vandalism, flood, hail, fire, falling trees or rocks, and other similar risks.
- Collision – If you’re in an accident with another vehicle, this policy will cover any damage to your vehicle or object if you’re the at-fault driver. Also covered is damage caused by your vehicle rolling into something, as well as potholes. Excluded are things like normal wear and tear and mechanical failure.
- Glass – There’s even a policy that provides coverage for damaged windshields. Not only does this include the windshield but also the rear window and side windows. Usually, glass protection rolls into a standard auto insurance policy, and there’s no deductible attached.
Summing It Up
Even if you live in a state where auto insurance isn’t mandated, it’s worth having. After all, you never know when something bad could happen. It’s better to have peace of mind while driving.