Auto Insurance in a Nutshell

Everyday, there are many people that are in car accidents. Semi-truck accidents, head on collisions, damage by fire, and some have smaller damages - but all of these are normal on American highways and streets. After a collision with a pickup, it could be very expensive to repair those newly bought rims if you don't have the help of auto insurance. By definition, auto insurance gives you coverage, paying for your damaged or stolen car, and in return you pay them premiums. Today, it is required that everyone in the U.S. has auto insurance, for protection, before being able to drive their car.

Cars get damaged a lot, making it very difficult financially for those who don't have car insurance. By paying premiums every year, you can get multiple forms of coverage from things like collisions, liability, theft, bodily injury liability, etc. Also, auto insurance protects you from paying a lot of money out of your pocket in a lawsuit by offering finances to the fight in court.

There are two types of car insurance, first and third party liability. First party represents the owner of the car and third party represents the people involved in the accident. The driver that has first party insurance is covered of all damages and third party insurance is vice versa. It is encouraged by the law that everyone gets third party insurance since most accidents are caused by another person.

Two major types of third party liability policies are bodily injury and property damage. With the bodily injury liability, it pays for medical expenses for those who are affected by the driver who owns the insured car. The property damage policy pays for dents and bent hoods caused by you in multiple car wrecks on I-65. To be able to get the money from the insurance company, the owner has to file a claim right after an accident. Filling out claims mean you have to keep accurate accident records and give proof of damage and level of fault. The more proof you have, the better the insurance estimate of the accident, which is why you should try to keep record detailed info. It is normal for the driver's of each vehicle to exchange information like license plate, insurance ID, right after an accident and file a report with the police with witnesses' names. Making a personal phone call to your insurance agent would help expedite the process of recovery also.

Keep in mind that claims are bound to take some time to get. Every auto insurance company has its own list of "qualified" car repair shops to work on the cars of their clients. This is done to save money. When purchasing car insurance, remember to keep deductibles at a minimum (the money that comes out of your pocket for damages), ensure low premiums, and look at the reputation of the insurance company. This is the best way to secure your car.