Important information about Auto|Car Insurance

Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

Car insurance is a kind of contract between you and a company to make sure that you will find a company agrees to pay to pay for certain types of financial losses when you are involved in an auto accident while driving your car. These financial losses include items such as property damage, medical coverage, and legal fees. In return you have to pay a yearly premium to your insurance company.

In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.( where there is a blame there is a claim!)

A 1994 study by Jeremy Jackson and Roger Blackman showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.

Car insurance is so important as you can’t drive without it. You may have your license suspended. In the case of an auto accident, you can potentially go to jail if your car is not properly insured at the time of the accident. So in one word, we can’t go without it, it is the cost of driving that simply cannot be avoided.

The minimum auto insurance that you have to pay varies from one state to another and also that depends on many other factors. This insurance covers bodily injury and property damage. There are many kinds of insurance on your car and you have to choose the best for you,

1. bodily injury: this kind of insurance covers injuries that occur to you or any other person involved in an accident when it has been determined that you are the "at fault" driver. Typically, this also covers you while you are driving another person's car (with their permission of course) or when someone else is driving your car (with your permission).
2. Property Damage: this kind of insurance covers the cost of damage you cause (or a person driving your car with your permission) to someone else's property in an accident when it has been determined that you are the "at fault" driver. This refers to damage caused directly to someone else's car and also covers damage to city property (light posts, telephone poles, fences, etc) and other structures such as houses, apartment buildings, etc.