How Does it Work?

An auto policy works much like any other kind of policy. If you are in an accident or sustain damage to your car in another way, you need to file a claim with your insurer. Your insurer will determine if the event was covered and, if so, how much money you are entitled to minus your deductible. Your insurer then will either pay you a settlement check or direct you to get repair estimates and submit them.

Different Types of Coverage

There are several different types of auto insurance policies. Liability insurance will pay for damage and injuries you cause to others in an accident, and it is the minimum amount of coverage required in most states. Collision insurance pays for damage caused to your car in a crash that’s not covered by another driver’s insurance. Comprehensive insurance covers non-crash-related damage such as hail damage or fire damage. Other coverage includes personal injury protection and uninsured motorist insurance.

Major Benefits

The main benefits of having car insurance include liability protection to cover you for an accident that is your fault and coverage for your own vehicle in case it is damaged in either an accident or some other event.