About Car Insurance

Make sure you're getting the coverage you need when you look for budget or discount car insurance quotes.

About Car Insurance
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Overview
Having car insurance is not just a necessity, but it is also a requirement in all states. That doesn't mean everyone purchases car insurance, but when accidents, theft, or weather damage occur to their vehicle, they will wish they had. Many car lots do not let the customer drive off the lot after purchasing a car unless they have some type of auto insurance. There are different types of car insurance available, such as liability, collision and comprehensive.
What Is Car Insurance?
When you purchase car insurance, you are protected against any type of loss or accident that may happen to your vehicle, the other vehicles involved, and all bodily damage. If your vehicle is lost or stolen, having car insurance helps cover the cost for these incidentals, depending on the type of insurance you purchase.
Liability Insurance
All states require that an individual have at least liability car insurance to drive a vehicle. This type of insurance covers damage that you cause to another person's car, if the accident is your fault. Having liability insurance will only pay for the repairs that need to be done to the car you hit, not for your vehicle. Also, having liability insurance will pay for any medical bills for any injuries that occur to the driver or passengers of the vehicle you have hit. Any bodily damage that occurs to you is not covered with liability insurance, just all injuries to the persons in the other vehicle.
Full Coverage Car Insurance
Full coverage car insurance can be costly, but it includes the most benefits. In addition to having liability insurance, full coverage gives you the luxury of having comprehensive coverage, and collision coverage. Full coverage insurance covers your car, as well as the damage of the other vehicle. You will be covered for not only collision, but also theft, weather damage and fire. Coverage for bodily damage done to both vehicles' drivers and passengers is also included with full coverage insurance.
When Coverage Lapse
Each car insurance company has its own set of requirements when insuring an individual or vehicle. Individuals must make regular insurance payments to prevent a laspe in auto insurance. A lapse in insurance may result in increased payments, a loss of discounts and/or benefits, and possible cancellation of insurance. If your auto insurance is cancelled, you are no longer covered by the insurance policy. A driver without auto insurance cannot legally drive his vehicle. If a driver is caught operating a vehicle without insurance, he may be fined, or worse, arrested.
Who Is Covered?
Families or roommates can purchase car insurance, and list all individuals in their home on their insurance policy. In some states, and with certain insurance providers, children under the age of 21 are insured to drive the cars on the policy of their home. Some insurance companies also have bonds that insure the driver, not the vehicle, allowing the driver to be insured in any vehicle he drives.
Resources
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Car Insurance Basics
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The Importance Of Full Coverage Car Insurance