Auto Insurance (often called car Insurance, vehicle insurance or motor insurance) refers to a specific type of insurance policy that applies to automobiles and other road worthy vehicles. In most countries and US states car insurance is required by law to maintain the safety of the driving system. The main purpose of auto insurance is to cover the damages and liability associated with road accidents, which can cause thousands of dollars to clean up, repair and unfortunately often results in death.
In the United States auto insurance is compulsory in almost all states, and is enforced by each state respectively; however in New Hampshire motorists do not have to be covered for liability and in Virginia if motorists do not have liability insurance they are required to pay $500 annually.
Not having car insurance or the specific type of auto liability insurance where required can result in serious penalties, license revoking and prison time for repeated offenders.
Typically there are different levels of insurance, with the lower levels costing less, but they also cover less. For example there is “third party fire and theft,” which will cover damages associated with another driver being at fault for fire or theft. A fully comprehensive auto insurance policy on the other hand will cover the vehicle for all types of damage, whether it was somebody else’s fault or the driver’s own fault. Insurance can cover the insured party (driver), the insured vehicle (their car) and third parties (other drivers, passengers or pedestrians).
Deductibles often apply to car insurance. This means the insurance company will not pay out if the damage is below a certain value. For example if you were involved in a sideswipe and only the side mirror was damaged this is unlikely to cost much in damages. You would be required to pay this out of your own pocket because it doesn’t go over the deductible amount set by your insurance company.
Finding an affordable auto insurance will save you money in the long run. To find cheap auto insurance your best bet will be to compare car insurance online or find car insurance broker.