What are the benefits of auto insurance?
There are many benefits of having an auto insurance policy. In the event of an accident or other covered loss, an auto insurance policy protects you from unexpected financial expenses. In exchange for a paid premium, an auto policy gives you peace of mind that comes with knowing you are covered financially if an unexpected incident occurs involving your vehicle.
In most states, auto insurance is mandated and is a requirement to operate your vehicle on public roads. Without auto insurance in states that require coverage, you could be fined or penalized for operating your vehicle on public roads. Laws may vary.
Why is it important to have auto insurance, and who benefits from it?
You need auto insurance to protect you from unexpected financial loss caused by a covered accident or another event. If you are at fault in a car accident, the liability coverage of your policy helps pay for covered losses, such as damage to the other party’s vehicle or other property and medical expenses for injuries that may have been caused as a result of the accident. Additionally, an auto policy pays possible legal fees if you’re taken to court over an accident. In most states, liability coverage on an auto insurance policy is a requirement to operate your vehicle on public roads. Laws may vary.
Auto insurance helps with expenses for damage to your own vehicle in the event of a covered loss or accident. The physical damage coverage (collision and comprehensive) would help pay for damages to your vehicle to get you back on the road safely. If your vehicle is financed through a bank or other financial institution, this coverage is usually a requirement of your lender to protect their interests.
If you own a vehicle, you benefit from having an auto insurance policy. Having a proper car insurance policy tailored to your needs can help protect not only your vehicle and wallet, but provide you with peace of mind.
What do I need to know about auto insurance?
A basic auto insurance policy provides three key coverages: Liability, Medical, and Property. An auto insurance policy can also provide other optional additional coverages that may apply to your personal auto needs. Discussing your needs and concerns with a licensed Southern Ambit Insurance professional can help you develop your auto policy to be tailored specifically to you.
Liability coverage provides help with losses to another party’s property or medical expenses incurred as a result of an accident where you are found liable. If the other party is injured as a result of the accident, your liability coverage will assist in paying their hospital fees, doctor bills, loss wages, among other expenses. It will also help with expenses required to repair or replace their vehicle and other damaged property as a result of the accident.
Medical coverage provides financial help with injuries to you or passengers in your vehicle as a result of a covered accident or event. This includes Uninsured/Underinsured Motorist Coverage, which would help with medical expenses incurred by you if you or a passenger in your vehicle is injured as a result of an accident caused by a driver who does not have an auto insurance liability policy or the liability limit of their policy is not enough to cover all of the incurred medical expenses. Medical payments is another coverage in this category that would assist with smaller medical claims. For example, a covered claim could be a passenger’s finger being accidentally slammed in your car door. Medical payments could assist in emergency fees or medical bills associated with this incident.
Property coverage will provide financial assistance with covered losses to your insured vehicle. There are two key coverages needed to protect your vehicle. Collision coverage will pay for losses to your vehicle if damaged in a collision with another vehicle or another object, such as a fence, pole, etc., whereas Comprehensive coverage will pay for losses to your vehicle that are non-collision related, for example fire, theft, storm damage, among other non-collision perils.