Auto insurance is a contract between you and your insurance company that provides financial protection in the event of a car accident or theft. An insurer will pay your financial losses per the details of the insurance policy in exchange for you paying a premium. At the most basic level, an auto policy provides coverage for property damage, liability for bodily injury or property damage, and medical expenses. Auto insurance policies are customizable to your coverage needs and budget.
What does auto insurance cover?
Insurance coverage provides peace of mind for problems on and off the road. Liability coverage helps with the costs of repair to another car or cars or property damage when you are at fault for a car accident. Comprehensive coverage protects against damage to your vehicles beyond your control, such as vandalism, storm debris, and theft. Collision coverage helps in the event that your car overturns or collides with another car or stationary object.
Personal injury protection (PIP) covers the medical bills of you and your passenger(s) if you are injured in a car accident. Underinsured/uninsured motorist bodily injury and property damage provide coverage in the event you or your passenger(s) are injured in a collision caused by an uninsured or underinsured driver. There are other coverage options such as rental car reimbursement, gap coverage, and roadside assistance that you can opt for as well.
Understanding how to choose the right car insurance can be tricky with so many coverage options available. At iSelect.com.au you can find and compare auto insurance quotes from a range of insurance providers. Whether you need a lower premium, a better rate, or additional coverage, a specialist can help you understand your options. You can compare policies, premiums, inclusions, and exclusions and shop around for optional extras like roadside assistance or choosing your preferred repair shop. Once you find the ideal car insurance quote and read the fine print, you can easily purchase your new policy from your chosen insurance company online.
What’s the difference between a premium and a deductible?
Insurance companies consider your age, driving history, zip code, and type of car when pricing your insurance policy. Your car insurance premium is the amount paid to your car insurance company in exchange for coverage. This can be paid in full when taking out the policy, or you can make monthly payments. Your car insurance deductible refers to the sum you pay out-of-pocket before your insurer will cover your claim. The higher your deductible, the lower your insurance rate, and the higher your out-of-pocket costs.
Having the right insurance policy in place before taking off for cross-country travel gives you peace of mind in the face of the unexpected. Days 3 gives a brief introduction to how vehicle insurance and warranties work around the world. International auto insurance coverage is a great option when taking your RV or motorcycle for an adventure outside of the United States.
International warranty coverage can make it easier to handle repair costs and roadside assistance when traveling in a motorhome from one country to another. Travel insurance typically covers personal belongings and medical expenses while traveling. Some travel insurance policies will cover some liability costs when you’re involved in an accident abroad.
Do you really need auto insurance?
Do you really need a car insurance policy? The short answer is yes, you do. Policy requirements vary from state to state, but in general, you will need some form of insurance coverage to legally drive. It’s also common for a credit lender to require car insurance before financing a new car. Regardless of how stellar your driving record is, failing to carry an active insurance policy will earn you a fine, license suspension, or even jail time in certain circumstances.
Motorists of all ages need to carry some form of auto insurance before setting off on the open road.