What is Car insurance?

So you need to know ?What is car insurance?? Car insurance is protection for your car, for you and for the other party who may be involved in an accident.

There are many categories of car insurance and the amount of coverage you select for your car will determine the cost you pay for your insurance policy. Your insurance policy should have these parts:

• Comprehensive insurance. This is to protect your car in case of fire, theft, towing, glass breakage or other damage not related to an accident. Some people with really old and beat up cars make this coverage amount really low to save money on their policy.
• Collision insurance. If you have an accident you will definitely need this coverage. This is what pays for the damage to your car from an accident.
• Medical coverage. You want a healthy amount of money set into the medical part of your policy. It will pay for your ambulance, hospital, emergency room and follow up medical expenses that come from an accident. Even more important is the amount of coverage that you arrange for your passengers.
• Liability insurance. This becomes important during an accident situation. It protects you and the other party. If the other person is un-insured or under-insured your liability policy needs to be able to cover the expenses incurred by that person. This is not a good place to cut corners.

You will pay a premium for your policy so it is very important for you to know what car insurance is and does. Depending on the company and on your policy it may be a monthly payment, quarterly or once a year payment.

Your policy will have a deductible amount built into it. That means you pay that amount of money before you can file an insurance claim. Correspondence will refer to ?applied to deductible?. There are some companies that will waive the deductible as part of their customer service, in order to win your business.

Across the United States it is necessary to have insurance on your car to legally drive your vehicle on public roads. Some states have a no-fault insurance program which continues to provide protection in case of an accident, but reduces the need for a lawsuit to obtain compensation for injuries or damage. Rental cars are usually covered by the credit card companies, though some insurance companies include rentals in their clients? car insurance coverage.

It may seem that car insurance is an unnecessary expense, but it actually is protection for you, for your car and for your passengers. It is illegal to drive a car in the United States without insurance.

When considering car insurance make a list of your car insurance needs, wants, and budget. Then start shopping. It may take a little while but with patience and persistence you should be able to find a car insurance policy that will meet all of your needs, many of your wants, and still fit into a price range that you can afford.