Who Is It For?
Anyone who drives needs auto insurance. An automobile insurance policy covers a specific vehicle, but some aspects of the policy follow the driver. For instance, if you are driving someone else’s car and get into an accident, your insurance covers damages rather than the car owner’s insurance.
How It Works
When you are in an accident or some other covered event, you submit a claim to your insurance company. An adjuster will evaluate the damage and decide if your claim is valid. If the claim is valid, then the insurance company will tell you to get estimates on car repairs or it will issue you a check. If there was damage done to another person’s property, then your insurer will work with that person and/or his or her insurer.
The last amount of coverage you can have is a liability. It pays for damage done to other people’s property when you are at fault. Other common types of coverage include collision, which protects your car from damage done in a crash; comprehensive, which covers damage that’s not from a crash; and personal injury, which pays medical bills.
The main benefit of auto insurance is that it means you’re following the law. It also means you have financial protection against loss caused by an accident.