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Auto Insurance

What it is Auto Insurance?

Automotive insurance protects passenger vehicles such as sedans, crossover SUVs, pickup trucks and vans. Whether there’s an accident or natural disaster, damage to an insured automobile can be covered under this type of insurance policy. Insured drivers don’t have to worry about spending a fortune on repairs and restoration.

Who it is For:

A person who holds a title to a motor vehicle is required to have auto insurance. Additional people could also be added to the policy of a given car under the permission of the owner. People who lease vehicles from dealerships or financial institutions are also required to buy automotive insurance. Having a driver’s licensed does not necessarily come with obligations to buy this insurance plan.

How it Works:

Automotive insurance is typically valid for a certain period of time such as six months or a year. At the end of the term, the policy holder must renew the insurance promptly. Claims are usually made after an accident or other event that causes exterior or interior damage to an insured vehicle. A person who files an insurance claim should ideally have some evidence such as a police report, digital photographs and surveillance videos.

Different Types of Coverage in Existence:

Liability coverage is a basic and mandatory plan for an automotive insurance policy. This clause covers medical expenses that result directly from an accident involving an insured vehicle. Regardless of who is at fault in a car crash, liability coverage pays for injuries sustained to all drivers and passengers involved. Comprehensive insurance covers damage that results from fire, flooding, storms and other forms of severe weather. Collision insurance is designed to provide compensation for repairs to a vehicle’s body, chassis and mechanical components that have been damaged in a crash.

Major Benefits:

Automotive insurance gives drivers peace of mind if their vehicles get damaged accidentally or deliberately by rogue individuals. By having this type of insurance policy, people can save a lot of money on costly repairs at auto shops. Automotive insurance also comes with benefits such as roadside assistance and compensation for car rentals.