Car insurance is an essential part of driving, and it's important to understand why. Not only does it provide financial protection in the event of an accident, but it also helps protect passengers and other drivers. Medical payment coverage and personal injury protection can help pay for medical bills if you're injured in an accident, as well as cover passenger expenses. Liability is one of the main reasons why car insurance is mandatory in 49 states.
If you are responsible for hurting another person, you must pay for the damage you caused. Liability insurance coverage will provide some financial relief to victims of an accident you caused. While you may only be required to have the minimum coverage in your state, you will need to have coverage for damage to your own vehicle if you have a loan or are in a leasing program. The most important coverage should be your state's minimum liability and property damage coverage.
Driving without car insurance can result in huge fines, including bills for the damage you caused. If you don't own a car, but a family member of your household does, you can file a claim under that policy. If you are injured in a car accident or if your car is damaged due to someone else's negligence, you may be able to file a lawsuit against that other person's auto insurance policy for liability for bodily injury and property damage. Shopping around will help you find a policy that pays for medical expenses that your health insurance may deny.
You should also file a claim with your auto insurer if you or a family member is injured while occupying an uninsured vehicle without knowing it, or if you are injured as a pedestrian by an uninsured motorist or who fled. Car insurance can also protect your vehicle from damage caused by an accident or a different covered risk, such as falling objects, fire, or theft. Car rental companies can sell a Collision Damage Waiver (CDW), also known as Optional Vehicle Protection (OVP). New Hampshire drivers don't need to buy car insurance, but rather show proof that they can pay for an accident if it's their fault. Car insurance is important protection not only for your car, but also for your financial liability.
For a small additional fee, this coverage for uninsured drivers can be extended to provide out-of-state accident coverage by endorsement. Many credit card companies also offer some form of collision damage coverage to their cardholders for vehicles they rent with that card. If your car breaks down in an accident or is stolen, most car insurance policies will pay you the real cash value of the car, which could be less than what you still owe on the loan. In conclusion, car insurance is essential for drivers because it provides financial protection in the event of an accident and helps protect passengers and other drivers. It is mandatory in most states and can help cover medical bills and other expenses related to an accident. Shopping around will help you find the best policy for your needs.