Auto insurance is insurance for automobiles, trucks, bikes, and other road vehicles owned by a person or an organization. Its main function is to offer financial coverage against physical harm or bodily injury incurred by a road vehicle or by other vehicles on the roads, and against legal liability which can also arise due to accidents in a car. The policy is further classified into third party and comprehensive, depending on the extent of coverage. Third party only provides coverage for damage incurred by a third party and comprehensive on the other hand, offers complete coverage for damage caused to a car, irrespective of who was at fault. This implies that if your car is damaged because of an accident caused by someone else, you will be the one personally covered through auto insurance. The same applies to medical costs or any other kind of loss, which is not covered under third party.
Auto insurance companies are governed by laws which regulate how they can provide coverage and set the terms and conditions under which a consumer can avail of the services. In case of an accident, your auto insurance company must compensate you to the full extent of the damage to property and the medical bills incurred. However, in some states, the driver of the vehicle at fault has to pay the expenses through his own policy. Similarly, the company is not required to compensate you for damages incurred due to theft or vandalism.
You can obtain auto insurance quotes from various companies. To do so, you have to submit a request to the insurance company offering the policy that you wish to have, and then check with them whether your request is entertained. Insurance companies usually require you to submit the details of your driving history, the vehicle make and model, as well as your driving record. If you meet their approval, the company will provide you with auto policy quotes.
In some cases, you may be able to avail of further discounts if you have installed anti-theft devices in your vehicle such as immobilizers, alarms and steering wheel locks. This may help pay for the cost of repairing your car in case of an accident. Also, if you install airbags, it could cover the repair costs for both your car and the other vehicle. Apart from that, if you install an alarm, the cost of installing the same may also be deducted from the total amount of liability insurance that you get.
However, before opting for this coverage, it is important to note that you are required to have this kind of insurance, even if you only hit another driver. This is because the uninsured motorist coverage kicks in if the driver of the other car is injured or hurt during the accident. This type of coverage is only meant to provide coverage for accidents that happen on the roads. This means that you cannot avail of this coverage for incidents that happen off the roads such as hit-and-run accidents. Although this coverage will not pay for your medical bills resulting from the accident, it will at least cover the repair costs for your car. This means that it will not cover any expenses for your vehicle if the damages were caused due to your own fault.
In general, having this type of insurance is helpful. However, it is not absolutely necessary as such. It is important to also take note of the traffic rules and regulations as well as follow them to avoid accidents. Remember to keep your driving record clean so that you can also benefit from lower auto insurance rates.
