Auto Insurance is Beneficial for all Drivers
Before you can legally drive any vehicle on public roads, you must comply with your local auto insurance laws. All US states have requirements for auto insurance coverage. At the least, you must have liability insurance or proof that you can pay for any damages that you cause. But before buying a policy, it’s important to know the insurance requirements in your area.
Liability is generally a requirement because it compensates other parties when you cause an accident. The property damage coverage pays for vehicle repairs or a replacement for damage that you cause. For instance, if you crash into someone’s house, liability would repair the home. And the bodily injury coverage pays for medical bills if you injure someone else.
Liability insurance doesn’t pay for your expenses, so you’ll need collision and comprehensive coverage. Collision covers repairs to your own car if the damage was caused by another vehicle. And comprehensive does the same, but it also pays for repairs or a replacement to your car if it is damaged in a non-collision.
When purchasing an auto insurance policy, you choose the coverage you want, the limits, and the deductible. You are financially responsible for expenses that exceed your coverage. Keep that in mind when choosing a coverage limit, because anything over that is your responsibility. You should occasionally review your policy to make sure it meets your needs.