subject: Why do you need Car Insurance? [print this page] Why do you need Car Insurance?
Insurance - promise of settlement in the case of loss; paid to people or companies so concerned about risks that they have made prepayments to an insurance company
car insurance protects you against financial loss if you have any accident. It is a contract between the insurance company and you. You agree to pay the premium and the insurance company it agrees to pay your losses as defined in your policy. Car insurance provides property, liability and medical coverage:
Property coverage pays for damage to or theft of your car.
Liability coverage pays for your legal responsibility to others for physically injury or property damage.
Medical coverage pays for the cost of treating injuries, treatment and sometimes lost wages and funeral expenses.
Teens mostly have the highest involvement rates in all types of crashes. Many fatal teen crashes involve excessive speed or driving too fast existing road conditions. The law requires drivers to be insured, have other preparations to pay for injuries or damages they cause in the event of a crash. The law provides protection against the reckless drivers.
Physically Injury Liability
Liability coverage applies to injuries that you, the designated to driver or policyholder, cause to someone else. You and family members listed on the policy are covered when driving someone else's car with their permission. It's very important to have adequate liability insurance, because if you are involved in any serious accident, you may be used for a large sum of money. Definitely consider buying more than the state-required to minimum protect assets such as your home and savings.
Assets Damage Liability
This coverage pays for damage you (someone driving the car with your permission) may cause to someone else's property. Usually, this damage to someone else's car, but it also includes damage to light posts, telephone poles, fences, buildings or other structures your car hit.
Medical or Personal Injury Protection (PIP)
PIP coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. In some of cases, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may cover funeral costs also cheap car insurance policy which will cover the damages done a car accident when you are at-fault. It covers the medical and property costs for the other party.
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