Auto Insurance

1 – What it is

Auto insurance is a protective coverage agreement that keeps the owner of an automobile financially and medically safe in the case of an accident. Different parts of automobile insurance cover different aspects of an automobile accident including damage to the vehicle, damage to any property and injuries that a person in the accident might incur.

2 – Who it is for

Automobile insurance is for anyone who owns a car. In certain jurisdictions, automobile insurance may be a legal requirement to drive a car. This type of insurance may also be required for a commercial driver who makes his or her living transporting cargo or otherwise driving a vehicle.

3 – How it works

Automobile insurance pays out a lump sum of cash in order to cover medical expenses, property damage and damage to the car after a claim has been successfully filed. In order for a claim to be filed successfully, reports must match with the description of damages to the car. In some cases, the driver cannot be at fault in order to claim certain expenses on a car insurance protection package.

4 – Different types of coverage in existence

There are many kinds of car insurance packages in existence. However, the two most common iterations include insurance for personal vehicles and insurance for commercial vehicles. Because commercial drivers are expected to have a higher level of competence behind the wheel, these insurance packages are much different from the types of protection that the day-to-day driver might receive.

5 – Major benefits

There is a huge benefit to the owner of an automobile insurance package of not having to pay large out-of-pocket expenses after an unexpected accident. There is also a huge legal benefit if a driver is caught by a law enforcement officer for some other infraction if the driver must own insurance to legally operate that vehicle in that jurisdiction.