Financial Security and Your Insurance Coverage

Each year, more automobiles and drivers hit the highways. This could lead to an increased likelihood of a car accident. The difference between a little bother and major obstacle can be your car insurance. So how do you know what insurance you need and how much to purchase? Car accidents can result in many different expenses, which can all be paid for based on the insurance policy you own. Auto insurance is required by law in all states and provinces. Choosing to drive without owning insurance could mean you have to repair or replace a stolen or damaged vehicle or pay the cost of any damage for which you might be responsible. Liability: Personal injury and property damage that you have caused will be paid for under this type of insurance. If you are sued, it also pays your court costs. State laws usually mandate standard amounts of liability insurance, but higher amounts can be purchased and are very beneficial. Personal Injury Protection: Personal injury insurance is required in some states and is optional in others. Sometimes referred to as no-fault coverage, this pays the medical treatment for you or your passengers regardless of who was at fault. State law usually sets minimum amounts. Medical Payments: Medical payment coverage can be purchased in non-no-fault states and will pay no matter who is responsible for the accident. All necessary medical or funeral expenses will be covered under this insurance coverage. Collision: This pays for damage to your car caused by a collision. Comprehensive: This applies if your car is stolen or damaged by something other than an accident, including fire, wind, hail, flood or vandalism. Uninsured Motorist: If you are hit by a driver without insurance or a hit-and-run driver, this type of insurance coverage will make sure you are covered. Under-Insured Motorist: This pays for collision expenses when an insured person is injured in an accident caused by a driver who does not have the right amount of insurance to pay for the full amount of the damages. Other types of coverage, such as emergency road service, are also available. State Farm Clermont