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Why we need auto insurance? Auto insurance policies introduction
Why we need auto insurance?
Why do we need auto insurance?
The answer to this question is that at some places it is mandatory under the law of the state to have insurance for your car or automobile. But it is also worth noting that this kind of insurance is helpful and advantages for people. Auto insurances cover gives you the financial security in case you get into something undesirable that is you get into accident or get injury while driving.
How it works?
Whenever you get into an accident in which your car get damaged and you destroy the property. Along with it if it further get bad and somebody may get dead than who is going to pay for the finances. I mean how you will pay for the bills, damages that you have done. In such situations the auto insurance comes in helpful. The insurance company will bear the expenses that are done for the damages.
The amount of money paid by the insurance company is roughly the addition of cost paid in repairing your car, the property damaged and medical expenses on the persons get injured. But here one thing is important to note that there are different types of auto insurances and there is some differences between these schemes.
Some insurances policies cover only the person driving the car. Some insurance companies will pay only when you are driving your own car. There are minute clauses and these are needed to be studied before taking any auto insurance cover. Based on the facilities and flexibility different insurance policies are available and there premiums are also different.
In USA the auto insurance for the automobiles must have some minimum liability. These minimum amount coverage provided by insurance cover vary from state to state in USA. There are some states like Virginia where there is no need for the insurance. It is based on your choice whether you want to have insurance or not. The Virginia state charges some money in exchange in advance for the damage that may happen to the property.
The auto insurance covers can be explained like 15/20/30, it means that that the insurance cover will pay $15000, $20000 and $30,000 for different types of damages. For example the medical cover will get up to $15000. The damage to the automobile cover goes up to the maximum limit of $20000 and the maximum cover for the damage to the property ranges to the $30,000.
The insurance cover money ranges are based on the amount of premiums that are willing to pay. You need to check the insurance companies and their policy schemes before booking one. You can contact your insurance agent, go to websites, can even visit their office in your city. You can even check the government agencies and the website for checking these conditions.