Understanding Everything There Is About Auto Insurance
Put simply, an auto insurance policy is an agreement between an insurance provider and a customer. The customer will pay an agree amount of money - known as a premium, and in return receive cover in the in the event of a car-related accident. Here are a few questions that many people in New York have about auto insurance.
Do I Really Need Auto Insurance?
In most states auto insurance is a legal requirement. You will either have to have some form of cover, or proven finances to cover payouts in the event of an accident caused by you. Auto insurance can protect you financially, and is highly recommended, even if it is not legally required, as it can help prevent you from paying large sums of money for medical expenses, therapy and loss of earnings in a worst-case scenario.
Who Does Auto Insurance Cover?
A policy covers all named drivers, as agreed when taking out the policy. This can include you, your spouse, other family members, and anyone that you have chosen to name as a driver of your vehicle.
What Does Auto Insurance Cover?
Most states require that you carry a minimum amount of liability insurance - coverage for injuries or damages caused to other parties, but it is a good idea to carry more than this minimum amount. There are additional types of coverage that you can arrange, depending on your needs. These are the different things that you can cover:
- Your car: This can be more than one vehicle, as long as it is listed on the policy. Your vehicle can be insured against collision, regardless of fault. You can also choose to insure against vandalism to your vehicle, and other damaging incidents such as extreme weather or falling objects.
- You and Your passengers: You can choose to insure persons that will be riding within your vehicle in the event of injury. This will cover medical bills and/or funeral expenses caused due to an accident in your car, to an agreed level of coverage.
- You, your passengers and your car against uninsured or underinsured motorists: If you are hit by an uninsured or underinsured motorist your losses can be covered.
What Affects My Auto Insurance Policy Cost?
The actual cost of your policy can be affected by many things, including where you live, the make and model of your car - and any safety modifications that have been made to it, your previous driving record - as high-risk drivers will cost more to insure, and your age - as older drivers have been shown to be more careful drivers.