Car insurance can be confusing, to say the least. Here's a simple explanation of what car insurance is and what it covers.
What is car insurance?
Simply stated, car insurance is a contract between you and your insurance company that protects you against financial loss when you're involved in an accident. You pay a fee and your insurance company agrees to pay for losses that are covered in your insurance policy.
What does car insurance cover?
Basic car insurance covers the following:
* Bodily injury liability coverage pays for medical expenses and lost wages for anyone you injure in an accident. It also pays your legal expenses if you're sued.
* Property damage coverage pays to repair the other person's car and any personal property you damage in an auto accident.
* Collision coverage pays to repair your car when you're involved in an accident.
* Comprehensive coverage pays to repair your car when it's been damaged by incidents other than an accident such as vandalism, theft, fire, floods, or storms.
* Personal injury protection pays for your and your passengers medical bills when you're involved in an accident, no matter who was at fault.
* Uninsured motorist coverage pays for your injuries if you're hit by an uninsured, underinsured, or hit-and-run driver.
* Rental coverage pays for a rental car when your car has been stolen or damaged and is being repaired.
* Towing coverage pays for towing fees when your car breaks down and you need to be towed.
Where can I get cheap car insurance?
Because rates can vary by hundreds of dollars from one company to the next, the best way to get cheap car insurance is to go to an insurance comparison website where you can get rate quotes from multiple insurance companies.