Car insurance is a financial safeguard against accidents, theft, and other unforeseen risks. It can help protect your vehicle from the costs or damages that are not covered by your own private automobile policy. For example, if an uninsured driver crashes into you in a hit-and-run accident, the car insurance company may cover expenses like your property damage and lost wages.
Important things you must know about car insurance.
1. Car insurance is provided mainly to protect yourself, your family, and others that you do not know.
2. The cost of car insurance depends on a number of factors, such as the make and model of your car, its value, the state in which you live, and how many miles each year you drive.
3. Your car insurance policy can help pay for damages from accidents other than hit-and-run accidents.
4. To receive coverage under a car insurance policy, you must have an automobile policy.
5. If a car insurance company denies liability coverage, you cannot sue the other driver in court. Filing a lawsuit can cost several hundred dollars and take months or even years (depending on where the accident took place) to settle.
6. You must maintain a safe driving record to keep your car insurance premiums low and prevent large out-of-pocket expenses from claims. Examples of safe driving include not speeding, not using drugs or alcohol excessively, and not getting into accidents that are deemed “at-fault”.
7. The minimum amount of car insurance you must have is recommended by the insurance companies. In some states, this minimum amount is as low as $5,000; in others, it may be as high as $100,000.
8. Your car insurance policy typically covers damages that are caused by other vehicles or people outside of your control – such as a motorist who runs a red light and causes an accident with your vehicle.
9. Most auto insurers charge higher rates for higher risk drivers (such as those who have been involved in an off-road parking lot accident or car speeder or hit-and-run accidents).
10. If you do not maintain car insurance for your vehicle, your car can be impounded and its registration suspended.
Car insurance is the basic insurance policy that protects you from financial loss due to unexpected situations, or a situation that you cannot control. If you do not have adequate car insurance, you may lose your vehicle for longer than the policy term.