Understand Auto Insurance


Are you considering the purchase of a new vehicle, but do not understand anything about auto insurance? While it may seem complicated, it truly is not that difficult to understand, so do not let purchasing an auto insurance policy intimidate you. Below you will discover a short overview of understanding auto insurance.

Liability Coverage

If you own a vehicle, you will be required to have liability coverage. This is the lowest form of auto insurance coverage, so it will only protect you in case of a motor vehicle accident that is your fault. While this will cover the costs of medical expenses and vehicle repairs for the other driver, you will have to spend out of pocket for these expenses. One great thing about having liability coverage is you will be protected from lawsuits and claims from damages, but this is not to say that the other driver cannot sue you, because they very well may do so.

Collision Coverage

Many drivers will opt to add more coverage to their auto insurance policy, because they want to be fully protected from financial loss. Collision coverage is a great option that will protect you, in case you collide into a tree, fence, or another’s vehicle. The coverage will pay for the repairs or replacement of your vehicle, in case of an accident that occurs and you have been deemed at fault.

understand auto insurance

Comprehensive Coverage

This is another great auto insurance coverage that will further protect you from financial loss. This coverage will reimburse you if your vehicle is damaged due to a fire, theft, flood, hail, vandalism, or large animal. Of course, you will have to select a deductible amount, which will range from $250-$1,000, but it is crucial to be aware of how much your insurance rates will be, if you select a low deductible.


Make sure that you do your research, so you will know what your options are, before you select an auto insurance policy.