Financial Security and Your Insurance Policy

There are more drivers hitting the road each year. This could lead to an increased likelihood of a car accident for you and your family. If you get in a car accident, the car insurance you own can make a big difference in what happens next. But why do you need to own insurance and just how much should you purchase? Insurance requirements will differ by state/province, but usually include the following: Liability: It pays for expenses due to personal injury and property damage to others for which you are responsible. If you are in legal trouble, it also pays your court costs. Recommended, more comprehensive levels of insurance are available that take care of more events than the stripped-down, state-mandated varieties. Personal Injury Protection: This type of insurance pays for hospital bills and other medical treatment for you and other people in your car, no matter who was responsible for the collision. It is sometimes referred to as no-fault coverage. Local law usually sets minimum amounts. Medical Payments: This type of coverage is available in states that are not considered no-fault and will pay no matter who is responsible for the accident. All reasonable medical or funeral expenses will be covered under this type of policy. Collision: This pays for damage to your car caused by an accident. Comprehensive: This kind of insurance takes care of all non-collision damages. This may include weather damage, vandalism, and burglary. Uninsured Motorist: Many drivers are breaking the law by driving without having the proper amount of auto insurance. This type of coverage will cover you if one of these drivers hit you. Under-Insured Motorist: Similar to uninsured motorist protection, this kind of insurance covers you from drivers without enough insurance coverage. Other types of coverage, like emergency road service, are also available. What you pay for auto insurance varies based on the company and will depend on several factors, including: * What coverage you choose * The type of the car you own * Your driving record * Your age, sex and marital status * Where you live Many people think of auto insurance as a necessary evil, but it can rescue your finances. Evaluate your needs, do your research , and with the help of your insurance agency, make the decision that fits you best. State Farm Clermont