You purchase car insurance for a couple reasons. In addition to the fact that it's illegal to drive without insurance, you realize that this could benefit you in the event of an accident.
At a very minimum, you will need to purchase liability insurance. This is used to compensate for damage and injuries to other motorists in the event that you caused an accident.
There are other coverage areas that you should learn more about, including but not limited to the following:
- Bodily injury: As noted above, this is what your insurance company will pay if other people are injured when you are at fault for the crash.
- Property damage: Also mentioned above, this helps pay for damage to the property of other drivers, such as their vehicle.
- Personal injury protection. This pays for injuries and damages claimed by passengers, as opposed to other drivers.
- Collision coverage. Even if you are at fault, this coverage ensures that your insurance company will pay for vehicle damage.
- Comprehensive coverage. This covers things outside of traditional vehicle accidents, such as theft, fire and vandalism.
If you don't know what your car insurance policy covers, now's the time to review your coverage in great detail. Maybe you like what you see, or maybe you need to make some changes to your policy to ensure a higher level of safety in the event of a future accident.
If you ever find yourself involved in a car crash, don't hesitate to read through your policy, consult with your agent and learn more about your legal rights.
Source: FindLaw, "Car Accidents and Insurance," accessed Jan. 25, 2018