FUNCTION OF AUTO INSURANCE

Everyone in this world  needs to have proper insurance to protect themselves, their family, and other drivers on the road.Auto insurance protects you from the high costs associated with collisions, damage, or theft, and the agrement are depending on your location.

Auto insurance is an agreement between  and insurance company in which you on your own part agree to pay some amount of money called premium on monthly bases to your insurance company in case you have an accident with your car and the insurance company agree to pay for any loss you encountered during the course of the accident.  This is a simple definition of auto insurance in a term you can understand. Although is not usually required by law, the auto collision insurance is usually required by the person or institution selling the car on a loan basis.

Different Types Of Auto Insurance 

Perhaps we already know how the insurance works, but sometimes all of us still confused what the different types of car insurance are?

it is important step how to getting the policy thats right for our car. Here are a few the basic car insurance types should we knowing :

• Liability Coverages  Auto liability insurance is a type of car insurance coverage that's required by law in most states. If you cause an accident, liability coverage helps pay for the other person's expenses. There are two types of auto liability coverage that drivers in each state must have: bodily injury liability coverage and property damage liability coverage. Auto liability insurance is one of type of car insurance that is required by law in most states, if caused an accident by you, then the insurance helps pay for the other person's expenses. 

• Collision insurance One of type insurance car wich  coverage that helps pay to repair or replace your car if it's damaged in an accident with another car or another object, includes a fence or a tree. If you're leasing or financing your car, collision coverage is typically required by the lender. If your car is paid off, collision is an optional coverage on your car insurance policy. collision coverage also has a limit, which the maximum amount your policy will pay toward a covered claim. Your collision coverage limit is typically the actual cash value of your vehicle. 

• Comprehensive insurance, It can provide an help pay for damage to your car due to incidenct besides collisions, including of the vandalism, certain wether events an accidents with animals. its extra level coverager

• Uninsured motorist insurance can protect you and your car against uninsured drivers and hit-and-run accidents. This coverage is often paired with underinsured motorist insurance.

• Underinsured motorist insurance Many drivers choose to carry the minimum in liability coverage to save money, but this might not provide enough coverage. Underinsured motorist insurance can protect you in the event of an accident with a driver whose insurance is not enough to cover the costs.

• Medical payments coverage Medical costs following an accident can be very expensive. Medical payments coverage can help pay medical costs related to a covered accident, regardless of who is at fault. 

• Personal injury protection insurancePersonal injury protection insurance may cover certain medical expenses and loss of income resulting from a covered accident. Depending on the limits of a policy, personal injury protection could cover as much as 80% of medical and other expenses stemming from a covered accident.

• Gap insurance Car value can depreciate quickly, so an auto insurance settlement might not be enough to cover the cost of a loan. Gap insurance may help certain drivers cover the amount owed on a car loan after a total loss or theft.

• Towing and labor insurance Available if you already have comprehensive car insurance, towing and labor insurance may reimburse you for a tow and for the labor costs to repair your vehicle.

• Rental reimbursement insurance Figuring out how to get around after an accident can be expensive. Rental reimbursement insurance helps pay for a rental car if your vehicle cannot be driven after an accident.

• Classic car insurance provides specialized coverage designed for the unique needs of vintage and classic car collectors. Find out if classic car insurance is right for you.

If you don’t currently have auto insurance, it’s crucial to get coverage as soon as possible. Get a free quote for the types of car insurance listed above so you're protected from the unexpected. in the next chapter  I will explain one by one the types of insurance spesifically.

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