Posted by on Dec 21, 2020 in Insurance | Comments Off on Auto Insurance – An Insight

Auto Insurance – An Insight

Auto insurance is coverage for automobiles, trucks, vans, motorcycles, and any other road-going vehicles. Its primary function is to offer financial protection against bodily damage or injury resulting directly from traffic accidents and also against legal liability which may arise out of such accidents in a car. The insurance provider either provides it on a pay-as-you-drive basis or the customer can choose to buy a policy that will be provided through an agent of that company.You may want to check out Garris Wilcox – State Farm Insurance Agent – Auto Insurance for more.

This type of coverage is considered as a ‘peril’ or ‘risky’ element in the risk assessment process of any loan or mortgage, because it may increase the risk or cost of a particular transaction. For this reason, every state has a law that makes it mandatory for an automobile owner to have a minimum amount of bodily injury liability insurance to cover the costs in case a vehicle accident occurs. The minimum requirement varies from state to state, but the minimums typically are in the range of at least $500. Failure to comply with this law can result in severe financial penalties for the owner, so it is vital to purchase such insurance.

Collision insurance provides coverage to repairs that are needed by the insured vehicle in the event the insured vehicle is damaged or stolen. Underinsured or uninsured motorist coverage reimburses the driver who is not covered by the at-fault insurance coverage in the event that the driver of the other vehicle involved in the accident is found to be at fault for the accident. This coverage relieves the burden from drivers whose cars get damaged in car accidents due to the negligence or inability of the insured driver to pay medical expenses arising from auto accidents.