What is the meaning of auto insurance?

Essentially, auto insurance is a contractual agreement between drivers and their insurance companies. Drivers agree to pay annual premiums in return for financial assistance from the insurance company after an accident or covered event.

Why is auto insurance important to have?

Auto insurance helps cover medical bills and repair costs after an accident or collision. Without insurance, you will be responsible for these costs out of pocket.

What does auto insurance usually not cover?

Auto insurance won’t cover intentional damage, such as if a driver crashes their car on purpose to try and get a car insurance payout. It also doesn’t cover mechanical breakdowns, the personal property in your car, pet injuries, or repair costs beyond your limit.

How much auto insurance should I get?

You will have to get the insurance coverage required by your state. If you have a lease or loan on your car, then you will also need comprehensive and collision coverage.

What do numbers like 25k/50k/25k mean?

If you see these numbers on your car insurance policy, they refer to the limits that your insurance company will cover.

What should I do after a car accident?

Ensure safety and call 911. Then exchange information, take photos and gather evidence, and contact your insurance company to file a claim.

Can I get auto insurance with a bad driving record?

You can buy auto insurance with a bad driving record, but rates may be higher due to the increased risk associated with a poor driving history.

How are auto insurance rates determined?

Car insurance companies determine rates based on factors like age, driving record, location, vehicle type, coverage options, and deductible.

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