Auto Insurance
Auto Insurance
Automobile Insurance
“Insurance is a legal contract that protects people from the financial costs that result from loss of life, loss of health, lawsuits or property damage.”(Nielson.) This protection is given to the customer in exchange for a monthly payment to the company. This is a legal contract which is known as a policy, binds the customer to the insurance company for the duration of the policy. Insurance, whether it be life, health or auto, helps customers feel safe from everyday risks that can happen in life. Most insurance is optional, although some states enforce a law that automobile insurance must be purchased in order to register a car. Automobile insurance is very important. It helps the policy holder to protect their car from accidents. Automobile insurance covers any possible damage to the policy holder’s vehicle. Depending on where you live in the country, in some ways depends on what type of insurance a person will have.
There are many types of coverage, when it comes to auto insurance. First there is Liability and bodily injury coverage. “All 50 states and the District of Columbia require minimum liability coverage amounts (Abramowitz 1.) This covers injury or damage of someone else’s property, if the policy holder was to cause this accident. If for any reason a lawsuit comes into play on account of this accident, the insurance company will also help to provide the support of an attorney, in order to help the case along (Heath 1.) Another type is comprehensive coverage. This protects the driver from any circumstances dealing with anything such as fire, or weather that could damage a person’s vehicle (Heath 2.) This also covers theft (Abramowitz 1.) The company will help pay for the damage, although the client is generally subjected to some type of deductible (Heath 2.)
“Collision coverage pays for any property damage caused to your own vehicle as a result of your own negligence.” (Heath 3.) This can be anything from hitting another call or even something such as a telephone pole (Abramowitz 2.) If this event occurs, a deductible must be paid and then the company