Financial Security and Your Insurance Policy

There are more drivers hitting the road each year. With the increasing number of vehicles on the road, accidents can happen. If you get in a car accident, the auto insurance you own can make a big difference in the experience you have. How can you determine what insurance you require and where you should go to buy it? Auto insurance provides you with protection from paying for injury or damage you cause others while driving your car, damage to your car or personal injury or injury to your passengers from a crash, and specific other occurrences, such as robbery. No matter where you are living, you are required to purchase some variety of auto insurance. By not owning insurance, you risk having to pay the full cost of any harm or injury you cause others. Liability: Liability pays for damages due to personal injury and property damage to others when you are responsible. Bodily injury damages can include medical fees, and lost wages. Property damage includes car repair costs and loss of use of property. It can also cover your defense and court costs if you are sued. State laws typically require standard amounts, but larger amounts are available and usually recommended. Personal Injury Protection: Personal injury insurance is mandated 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. This insurance may also pay for lost earnings, service replacement and funeral expenses. The minimum amount of this insurance is typically set by the state. Medical Payments: Medical payment coverage is available in states that are not considered no-fault and will pay regardless of who is responsible for an accident. All necessary medical or funeral expenses will be paid for under this type of coverage. Collision: Pays for damage to your car caused by an accident. Comprehensive: Applies if your car is stolen or damaged by causes other than an accident, including fire, wind, hail, flood or vandalism. Uninsured Motorist: Pays for damages when someone with insurance is injured in a crash caused by another person who does not have liability coverage. Under-Insured Motorist: Similar to uninsured coverage, this type of insurance protects you against people driving without sufficient insurance coverage. Other kinds of car insurance, including car rental, can also be purchased. State Farm Clermont