Before you fill up the gas tank and set off on an adventure, it’s very important to make sure that you’re in possession of a valid auto insurance policy. Having an auto insurance policy isn’t just recommended- in fact, it’s mandatory in 49 out of the 50 states1. Even beyond the legality, having a strong auto insurance policy protects you and everyone else on the road in the event of an accident. But fear not, because auto insurance policies aren’t hard to find!
What is Auto Insurance
Auto insurance is a contract between you and your insurance company that protects you from financial loss and liability in the event of a car accident, whether it involves just you or another party.
Damages arising from car accidents can be sky-high and often require immediate reimbursement; not having the money to pay for damages can be devastating to all parties involved. An auto insurance policy helps protect the operator of the vehicle from these types of costs and damages2. When an accident occurs, the insurer pays out a portion of the costs owed; this amount is determined by the type of policy held by the driver.
Where can I get Auto Insurance?
Obtaining an auto insurance policy is a pretty easy thing to do. There are many options on the open market for insurance policies. Depending on the type of coverage you need and the state in which you live, you can get different prices for different levels of insurance. It’s important to use the internet to search for varying options from multiple different companies to find an auto insurance plan that makes sense for you!
The best way to make sure you’re getting the best deals available is to compare rates from different insurers. Shopping around the open market ensures that you’ll see competitive rates for different types of insurance; the more options you see, the better the chances of you scoring a great deal on auto insurance. There are websites that you can use to compare quotes side by side to see the true cost of obtaining auto insurance coverage.
When looking for auto insurance, it’s important to determine both the level of coverage you need and the price you’re willing to pay per month. You can use these two points to find a policy that gives you the right amount of coverage without costing too much money. You can even use the internet to compare insurance options for you side by side! It doesn’t get much easier than that!
Why do I need Auto Insurance?
When an automobile accident occurs, there are many different types of damages that can occur. For one, the cost of repairing a car, even just for minor exterior damage, can be very expensive. In a bad wreck, these damages can sometimes necessitate buying a new car entirely, and can easily total into the tens of thousands of dollars. The driver at fault in the accident can also be held responsible for damage to property.
Beyond the physical damage to vehicles, though, is the human cost. When an automobile accident results in physical harm to the people in other vehicles, the driver at fault is responsible for covering those costs. Without insurance, the amount owed can turn into crippling debt. These types of costs can include hospital stays, medical care, ongoing support costs, and potentially even settlement costs if a lawsuit is filed. For most people, paying these costs upfront is next to impossible, but with a strong auto insurance policy, it’s much more manageable.
Getting an Auto Insurance Policy
Getting an auto insurance policy is a fairly easy process, and there are many different insurers on the marketplace that offer a variety of coverage options. When you seek out an auto insurance policy, there are a few things that the insurer will want to know about you. First, they’ll want to know your age, location, and the type of car you drive. These items can influence the payments you’ll make for your policy. Second, the insurer will want to take a look at your driving record; the fewer accidents and tickets you’ve accrued, the easier you will be to insure.
Third, the insurer will ask you about the type of policy you’d like to purchase. You’ll have a choice in things such as the amount of coverage you’d like to have, the type of coverage you’ll possess, and the deductible amount. You’ll be able to learn more about all of these options provided by the insurance company before you commit to any long-term program.
The Takeaway
There are many benefits to carrying a valid auto insurance policy, the most important of which is the protection of yourself and those around you.
Having an auto insurance policy protects your own car, other cars, and the passengers inside of them3. In the event of an accident, whether it’s a simple fender bender or a multi-car wreck, auto insurance helps to cover the costs of fixing the cars and equipment, medical and rehabilitation costs, as well as any ongoing maintenance costs stemming from the event.
1 https://www.thezebra.com/auto-insurance/policies/why-is-car-insurance-mandatory/#:~:text=Car%20insurance%20laws%20are%20set,show%20proof%20of%20financial%20responsibility
2 https://www.iii.org/article/what-auto-insurance
3 https://www.policygenius.com/auto-insurance/what-does-car-insurance-cover/
