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Auto Insurance

The Importance of Auto Insurance

Most states in the US require that all automobile owners have auto insurance. A driver will be unable to legally drive or renew a tag if there is no insurance on the vehicle. This is why auto insurance is so important. In most cases, liability insurance is all that is required. However, there are many more options available for purchasing auto insurance.

There are many variables when it comes to purchasing auto insurance. Comprehensive and collision coverage helps pay for expenses related to an accident or other type of event. For instance, collision coverage can pay for repairs related to an automotive accident. Collision coverage may even be required if you try to get a loan to buy a car. Comprehensive coverage offers wider coverage, and may cover expenses related to an accident, a natural weather event, theft and more.

Liability is the most common type of auto insurance, mostly because drivers are required by law to maintain a minimum amount of liability coverage. This coverage pays expenses when you cause damage to another motorist or property owner. Note that liability auto insurance does not cover your vehicle repairs or medical expenses.

Other options with most auto policies include towing, car rental when your car is in the shop, and personal property or personal injury coverage. When buying a new policy or updating existing coverage, it is important to learn about all the benefits and options available.

Several types of incident can lead to costly automobile repairs. Your car could be involved in an accident, receive damage from bad weather or become the target of theft or vandalism. In any case, you will need money to repair or replace the vehicle. Auto insurance helps you pay for some or all of these expenses. The insurance is required by law, and is a smart move because it protects your investment.