Whether you’ve been driving for 40 years or it’s your first time behind the wheel, one thing is certain—accidents can happen. That’s why virtually every state mandates vehicle owners and drivers carry some type of car insurance.
While the type and amount of insurance you’re required to carry can vary from state to state, most require you to purchase coverage for damage you cause to others in an accident you’re deemed fully, or partially, at fault for. This type of coverage is known as liability insurance.
Because most accidents involve two or more drivers, drivers often share responsibility. Carrying liability insurance protects you from paying out large sums of money if the accident you’re involved in causes major vehicle damage or injuries to one or more drivers.
Before you sign on to an auto insurance plan, it’s important to know the following:
Although your insurance provider can advise you on your state’s insurance mandates, it’s important for you to fully understand the terms to determine whether you want to purchase additional coverage beyond the requirements. Liability insurance plans can include the following coverages:
In addition to standard liability coverages, many states require that drivers are offered the option to purchase additional coverage types—many of which are injury-related. These options make financial sense if you would have difficulty paying for major medical expenses. The standard options are:
While states don’t require you to hold the following coverages—and don’t require insurance providers to offer them—you may choose to stay protected with optional coverage, including:
With so many requirements and options, choosing an insurance plan can feel overwhelming. Knowing your state’s insurance requirements, what different coverage terms mean, and how you’ll be protected can help you choose a plan—and get behind the wheel—with more confidence.
Now that you’ve learned the basics, here are more facts about auto insurance, including coverage discounts.
Are you concerned about your auto insurance costs? Here are some tips to help you manage them. If you have further questions regarding costs and flexible payments, we’re here for you!