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Auto insurance

Most states require all drivers to obtain liability auto insurance. There are several types of policies available. Coverage benefits the policyholder and other drivers, as well as pedestrians and anyone affected by the driver’s actions. Examine what this coverage includes to understand your choices.

Since most states make it mandatory for drivers to purchase liability insurance coverage, this means a driver cannot legally drive without insurance. Liability insurance provides benefits to others impacted by the actions of the policyholder. Most often this means following a car accident, liability coverage will pay for vehicle repairs, medical costs and other expenses for drivers affected by the accident.

If the policyholder is paying a loan that helped purchase the car, then the lending institution often requires collision and comprehensive coverage as well. This coverage provides compensation for the repair or replacement of the driver’s vehicle. Collision coverage is mostly for covering damage from a car accident, while comprehensive coverage is for losses due to theft, vandalism or weather.

There are also several optional choices drivers may select. It varies based on the insurance company. One option includes personal property insurance for items damaged or stolen from a car. There is also coverage for reimbursement for towing and renting a car.

Drivers should consider their needs and desires to help decide what coverage is best. Drivers can qualify for discounts on premiums if they meet certain requirements, such as having no accidents on their record, are married, and have a secure place to park their vehicle. Insurance provider offer different choices, so check with several provides to make a comparison.

Check your state laws to find out the coverage you need. There will be a minimum limit you will need to comply with. Auto insurance is costly, but it is less expensive than paying out of pocket costs following an accident.






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