Financial Security and Your Insurance Policy

We see more drivers on the road every year. This could lead to a higher possibility of a car accident. The difference between a small aggravation and large obstacle can be your car insurance. But why do you need insurance and just how much do you need? Your car insurance may be able to pay for the expenses from a car crash ranging from hospital bills to replacement costs. Your state or province certainly mandates some type of car insurance. Choosing to drive without owning insurance could mean you have to repair or replace a stolen or damaged vehicle and pay the cost of all the damage for which you might be responsible. Liability: Bodily injury and property damage that you are responsible for will be paid for under this type of insurance. It also covers your legal fees if you are sued. Recommended, higher levels of insurance are available that cover more than the lower, state-mandated insurance. Personal Injury Protection: This is mandated in some states and is optional in others. It pays you or your passengers for medical treatment resulting from a crash, regardless of who may have been at fault, and is often called no-fault coverage. State law usually sets minimum amounts. Medical Payments: Medical payment coverage can be purchased in non-no-fault states and will pay regardless of who is responsible for an accident. All necessary medical or funeral expenses will be paid for under this type of coverage. Collision: Pays for damage to your vehicle caused by a collision. Comprehensive: Protect your vehicle from all non-collision damages when you buy this type of insurance. This may include protection from robbery, vandalism, and weather damage. Uninsured Motorist: Too many drivers are ignoring the law by driving without having the right amount of auto insurance. This type of coverage will protect you if you are in a collision with one of these irresponsible drivers. Under-Insured Motorist: There are other drivers who have liability insurance that might not be able to pay for all the expenses they are supposed to take care of. This type of insurance protects you in accidents involving those drivers. Emergency road service, car rental, and other varieties of coverage can also be purchased. What you pay for car insurance varies based on the company and will depend on several factors, including: * What coverage you select * The type of the vehicle you drive * Your driving record * Your age, sex and marital status * The place where you live Many people consider car insurance to be a necessary evil, but it can save you from a financial fiasco. Review your needs, research your options, and with the help of your insurance agent, make the decision that fits you best. State Farm Clermont