In many states, driving without automobile insurance is illegal. However, there are a few states, like Wisconsin, that have a less strict “proof of financial responsibility” law. Even if it is legal to drive without insurance, you want to be sure that you purchase at least automobile liability insurance. Liability and collision coverage will cover your financial responsibilities if you are in an accident. Repairs to your car or that of the other driver, or vehicle replacement will be covered up to your policy limits.
Read over your insurance policy to be sure that you understand all of the details of the coverage. This will allow you to see the policy limits, the deductible(s), and the coverage that you have. There are two different types of auto insurance. Liability is coverage for an at fault accident and will most likely be in compliance with any state’s minimum insurance requirements. The second type is known as “full” coverage or comprehensive coverage and it gives you additional protection if you are at fault or if your vehicle is damaged due to something other than an accident involving another car.
You can add additional coverage and go with higher policy limits and lower deductibles, if you are willing to pay for it. Some insurance providers even offer medical coverage, which allows for reimbursement of medical expenses if you are in an accident. Rental car insurance if your car is damaged is also an option.
The best benefit of having car insurance is that you do not have to pay for your own car repairs out of your pocket. After you pay the deductible, your policy will begin paying. Whether it is damage to your car or damage to someone else’s property, your automobile insurance policy can protect you from the financial issues.
Insurance companies often offer different incentives to get and keep customers. From lowering or eliminating deductibles if you do not file an insurance claim, or giving discounts if you are a safe driver, there are many ways you can be rewarded.
Automobile insurance comes in many different varieties, so it is important to evaluate your choices to be sure that you get the right coverage for you.