Auto Insurance! It's a must!

Automobiles and cars are not just luxury, but it is also a necessity. Who would not love to go from and to a certain place with the convenience of using a car? We all love it, right?! But the law of every State says that all vehicles that are on the road must be equipped with at least the states minimum amount of coverage or insurance.

What is an auto insurance? It is an insurance purchased by the owner of a vehicle to cover losses due to traffic accidents or theft (source: en.wiktionary.org/wiki/auto_insurance). It is the owner's protection through a contract in which one party agrees to pay for another party's financial loss resulting from a specified event.

Is it really necessary? The answer is a big YES! Not only that it is required by all, but it is for your own benefit. Once you have an auto insurance, there is nothing to lose,  but all to gain.

Types of Auto Insurance Coverages:

1) Auto Insurance Comprehensive Coverage - covers damages to your car that are not caused by other motorists or drivers. These damages include, fire, theft (of the whole car, or parts of it i.e. Stereo, Rims), damage from acts of God or nature, such as ice storms, tornados, hail and floods. Lastly it covers if you hit an animal on the road, or if your vehicle gets vandalized.

This type of coverage is optional and should only be purchased if your vehicle is worth more then $1000.

2) Auto Insurance Collision Coverage- Collision coverage covers your own car, when you encounter physical damage to it, as a result of a collision into another car or on an object such as a light post or road barrier.

3) Auto Insurance Liability Coverage - Required by law. Motorists must purchase and have a minimum amount of insurance to protect themselves and other co-drivers. Whenever you drive a car, you are capable of causing damage, to property or to other persons. Since most people don't have the money to cover these damages, governments require drivers to have liability insurance that will cover any losses that you cause on anyone or their property.

You can purchased any of the above insurance, depending on your capability to pay a specific amount for a specific coverage.

Companies that offer Auto Insurance:
USAA
STATE FARM
GEICO
NATIONWIDE
ALLSTATE



credit given to: http://www.auto-insurance-knowledge.com/auto-insurance-comprehensive-coverage.html