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Credit
Card Answers |
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Q |
What is auto insurance? And, why do I need it?
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A |
Like any other insurance,
auto insurance is a contract between an individual and
an insurance company. The insured pays a regular
specified premium on the policy and in turn receives
coverage from the insurance company for any loss related
to his/her car for that set period. Damages that usually
occur due to accidents. A few states feel that it is
mandatory for every person who drives a car to have an
automobile insurance to cover the person's all car
related financial losses and medical expenses to the
injured who are involved in the accident. Automobile
insurance is necessary because sometimes you might
injure another person or cause damage to others'
vehicles, for which there should be a liability coverage
to support you in such cases. Regardless of the fault,
there will be coverage for all medical and related
expenses for the person who drives and the ones who
travel in case of car accidents. Though in few places
coverage is not required, automobile insurance can serve
as the best option to meet risk in case of car
accidents. Without an automobile insurance, you will
have to bear the entire risk for any harm you cause to
others and for repairing, replacing, damaged and stolen
cars. |
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