Car Insurance Basics

There are more cars on the road each year. With the increasing number of vehicles on the road, crashes will happen. Car insurance can make the difference between a minor setback and a large trial. So how do you know what type of car insurance you need and the quantity you should purchase? Coverage requirements vary by state/province, but usually include the following: Liability: Bodily injury and property damage that you have caused will be paid for under liability insurance. If you are sued, liability insurance will pay for your defense and court costs. Recommended, more comprehensive levels of insurance can be purchased that take care of more events than the lower, state-mandated varieties. Personal Injury Protection: This is required in some states and is optional in others. Sometimes referred to as no-fault coverage, this pays the medical treatment for you or your passengers regardless of who was at fault. Local law usually sets minimum amounts. Medical Payments: Medical payment coverage can be purchased in states that are not considered no-fault; it will pay regardless of who may be responsible. This insurance will pay for an insured person's reasonable medical and funeral expenses for bodily injury from an accident. Collision: Damages that occur from a car accident will be paid for under this kind of car insurance. Comprehensive: Protect your car from damages from other sources when you buy this type of insurance. This can include protection from burglary, vandalism, and fire or flood damage. Uninsured Motorist: Thousands of drivers are ignoring the law by driving without having the proper amount of insurance. This type of coverage will cover you if you are in a collision with one of these drivers. Under-Insured Motorist: Pays for damages when an insured person is in an accident caused by another person who does not have the right amount of insurance to cover the full amount of the damages. Other policies, including car rental, are also available. State Farm Clermont