More than likely, you depend on your car to get to work, shuttle the kids around town, or accomplish life's little tasks on a daily basis. You might also use it to make the most of your leisure time — setting out on weekend road trips to country inns or amusement parks.
Whether you drive a sports car or an old pickup truck, it's likely that the law requires you to purchase auto insurance. But there are many options over and above your state's mandated minimum insurance. Buying additional coverage could save you money on repair bills or cover a judgment against you in the event of a lawsuit.
Even if you come out of a wreck safe and sound, the weeks following an auto accident can be full of challenges. While they are certainly not mandatory, several types of optional coverage can make life easier if your car is disabled or headed for the repair shop.
Whenever an auto accident occurs, the issue of responsibility takes center stage. In most cases, the insurance company of the "at-fault" driver must cover the damages, so a careful investigation is conducted.
You and your neighbor could own identical cars yet pay a vastly different sum for insurance. That's because you each may have a different set of circumstances that affect the level of risk you represent to an insurance company. Your premium, which is the amount that you pay for the policy, will be determined based on several factors.
Automobile collisions happen every day, clogging thoroughfares, twisting metal, complicating lives. Although no one wants to experience a wreck, knowing what to do in case one happens to you could soften the impact on your life in the days and weeks to follow.
So your car was crashed or stolen, and you filed a claim with an insurance company. Now what?
Many individuals who run a business from their home must decide whether or not to buy personal or commercial auto insurance. And other drivers may use their own car to handle business at the request of their employer. Whatever the circumstances, some questions arise regarding the insurance coverage for a car that has a job to do.
Have you seen your driving record go up in smoke, only to learn that your insurer has cancelled your auto policy? It may be quite difficult to find a company that is willing to provide insurance down the road. And if you do find one, be prepared to pay the high premiums demanded of a high-risk driver.
If you've ever seen a young driver in a hurry, blasting the stereo and distracted by a rowdy carload of friends, then it's easy to believe the studies that point out that, statistically, 16- to 19-year-olds are the riskiest drivers on the road.1