Car Insurance

No matter how good a driver you are, it is necessary to have car insurance.  Even though you may be a good driver, someone else on the road may not be a very good driver.  It is also possible to get into an accident where you are to blame but it is not entirely your fault.  Icy roads, for example can cause an accident no matter how good a driver you are. 

Why Do I Need Car Insurance?

Car insurance is necessary to pay for repairs for your car or someone else’s car.  If you are in an accident which is your fault, you will need to pay for the damages on both your cars, as well as the other drivers. 

If there is anyone injured in the accident, the car insurance company of the driver at fault will need to pay for the medical bill, lost wages from a job, and pain and suffering.  If any property is damaged during the accident, for example if you hit a fence with your car, this property damage will need to be paid for.  Without car insurance, a person could lose everything that they have if they are in an accident which is their fault.  The other party can sue you and take your home, car, and even attach your wages.  If there is a lawsuit with no car insurance, it can cost you everything.

Types of Car Insurance

There are a couple types of car insurance.  These types of insurance have several different costs.
Full coverage car insurance: Full coverage car insurance is an insurance with the most benefits.  This insurance will cover your vehicle and your body even if the accident is your fault.  If the accident was not your fault, the other driver’s car insurance will be responsible for payment of damages. 

If you are in an accident and the other driver is at fault but does not have car insurance, your insurance will be able to pick up the costs so that they do not have to come out of pocket. This is the more expensive type of car insurance only because it covers both you and any other driver.

collision car insurance: Collision is the minimum insurance required in most states.  This insurance will only cover the other party if you are involved in an accident which is your fault.  They will not pay any damages to your car, your passengers, or you.  Because this insurance does not cover your vehicle or those people in it, the premiums are not as high as full coverage motorists.

uninsured motorist car insurance: Uninsured motorist is a type of insurance that can be purchased separately to be added onto collision.  You cannot purchase uninsured motorist insurance only.  When a person chooses to have collision car insurance only, they may opt for the uninsured motorist insurance as well.  With uninsured motorist insurance, your car will be covered if you are hit by a driver who does not have insurance.  It will also cover you if you are a victim of a hit and run driver.  If the party who is responsible does not have insurance or you cannot tell who the responsible party is, uninsured motorist car insurance is a good idea.  When used in conjunction with collision, it remains cheaper than full coverage.

SR22 Licence insurance: SR22 is not exactly a car insurance.  It is an insurance on your licence.  This is a mandatory insurance for people with very bad driving records.  It is not possible to get a licence for some people unless they take out the SR22 licence insurance.  People with DUI’s or DWI’s on their driving records are required to take out the SR22 insurance before getting their licence back.  Another reason that someone may need SR22 insurance is if they have been in several accidents which were their fault resulting in injury or serious damage.  The state may require a person to take out the SR22 licence insurance before allowing them to get their licence back.
This insurance is to be used in conjunction with full coverage or collision car insurances.  It is not meant to be used as a car insurance.  It is used as an additional coverage or risky drivers.

What is a Deductible?

A deductible is the amount of money which is set in the case of an accident.  For example, if a person has full coverage and is in an accident which is their fault, they will use their insurance to pay for the damages.  The deductible is the amount of money which needs to be paid out of your pocket.  The deductible on one’s insurance is decided when you first purchase your policy.  The deductible does not depend on the amount of damage done to the vehicle. 

If you are in an accident which is not your fault, you will not be required to pay a deductible.  Even if you must use your uninsured motorist insurance to pay for the damages, there is no deductible.  You are only responsible for paying a deductible if you are at fault.

What is an Insurance Premium?

An insurance premium is the amount of money that a person much pay to have their car insurance.  The amounts are set bases on your driving record.  If a person has had no tickets and no accidents, they will be paying low premiums.  People with higher premiums are the ones who have had several accidents and speeding tickets.  The worse a person’s driving record, the higher the premiums will be. 
When figuring a premium, the insurance companies do not consider a person’s driving record since the day they received their licence.  They go back three years.  If a person had a bad driving record then had no accidents or tickets in three years, they will have a low premium again.  

Having car insurance is mandatory in many states now.  Having it is very important no matter where you live.  Accidents happen all the time, why not be protected.