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Auto Insurance

Guide to Car Insurance


Whether you drive a car that is borrowed or one you own or lease the fact remains that you are legally required to carry at least a minimum level of car insurance. This is vital to protect not just yourself but other drivers from the consequences of car accidents. Remember that there are various choices with car insurance that go beyond liability protection (normally what states mandate) and into safeguarding policyholders from a myriad of perils and incidents.


A good car insurance policy is distinguished from most other types of insurance in that auto policies are mainly designed to protect other drivers from property damage and injuries for which you would be responsible. Of course, there are many other helpful coverage options available that can, for example, provide protection for your own car as well, regardless of fault.

Who Needs it

Good car insurance benefits a driver regardless of whether he or she owns the car being operated. When driving a borrowed car, the car owner’s coverage usually covers the vehicle, but note that it will not cover the driver. Everyone needs their own coverage.

How it Functions

Policy coverage does vary, but good car insurance can offer protection to you and the vehicle as well as others on the road. Should you find yourself involved in an accident, one of the first things you should do is call your insurance provider. Once the accident has been investigated, the insurance company will determine the policyholder’s liability and then compensate according to the findings. The amount paid out will be up to the limit stated in the policy minus the deductible that the policyholder has to first pay.

Types of Coverage

There are several kinds of coverage for auto insurance. Liability is the protection that provides payments for the damage that you as the driver cause to other people’s property, such as another vehicle or a stationary object and for any injuries that you cause. This aspect of coverage is legally required in pretty much every state. Collision coverage is what compensates for damage to your own vehicle as a result of an accident that another driver’s insurance will not cover. Comprehensive coverage helps with the loss to your car that is the consequence of anything other than a accident, such as hail, theft, or even vandalism. These forms of coverage will come with a deductible. Other kinds of coverage include personal injury and uninsured/underinsured motorist coverage.

The Benefits

A big positive in carrying quality auto insurance is the liability protection it can give you. This is what can help you to avoid any financially ruinous out-of-pocket payments for an accident for which you are deemed at fault. If you also carry collision and comprehensive coverage, you also have access to valuable protection for damages to your vehicle that arise from other sources. Besides the legal requirement, having good car insurance coverage can help you from emptying your bank account.