Automobile

Understanding Auto Insurance – The Basics

REPUBLIKDIGITAL.COM – Basic personal auto insurance provides you with some financial protection just in case of an accident. It is mandated by most U.S. states.

But is it enough? What are the options? Learn how automobile insurance works and what sorts of coverage are available.

Auto insurance is a contract between you and therefore the insurance firm that protects you against loss in the event of an accident or theft. The insurance firm agrees to pay your losses as outlined in your policy, in exchange for your paying a premium.

Auto insurance provides coverage for:

  • Property – like damage to or theft of your car
  • Liability – your liability to others for bodily injury or property damage
  • Medical – the value of treating injuries, rehabilitation, and sometimes lost wages and funeral expenses

Auto insurance coverages are priced individually (a la carte) to allow you to customize coverage amounts to fit your exact needs and budget.

Auto insurance policies are renewable. They are generally issued for one-year or six-month timeframes. The insurance firm sends a notification when it’s time to renew the policy and pay your premium.

Image by S. Hermann & F. Richter from Pixabay

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