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The Importance Of Auto Insurance

Auto insurance is insurance specifically for automobiles, motorcycles, trucks, and other road-going vehicles. Its primary function is to provide physical protection against bodily injury or physical damage resulting from road accidents and from liability which can also arise out of personal accidents in a car. In addition to this, auto insurance also takes care of liabilities that arise out of using the automobile such as medical bills and property damage. In most states, a policyholder must carry an auto insurance policy in order to drive a car on the road. For more info learn here.

There are basically two kinds of auto insurance policies – collisaion and comprehensive. Collision coverage pays for repairs, which may be done at the expense of the insured, to both the insured and to the other vehicle involved in the accident, and also covers the repair of the vehicle of the one who caused the accident. Comprehensive coverage, on the other hand, pays for damages not only to the one who is the main policyholder, but also to any other vehicle, person, or item involved in the accident, provided that such other vehicle, person, or item is not the insured’s direct vehicle or belongs to someone not related to the insured. Comprehensive coverage requires the full payment and release of all claims against the insured.

Auto Insurance are different types, covering different types of liabilities and coverages. It is necessary that you understand all the coverages that are being offered to you, because each type will have different limits and requirements in terms of payment and release of claims should an accident occur. Liability coverages would include bodily injury and property damage liability coverages that may be incurred in the event of an accident. It is important to choose the right type of auto insurance that will meet your needs and will keep you and your vehicle safe and secure.