What Are the Principal Types of Auto Insurance?
If you are involved in an accident or have your car stolen, having the right kind of auto insurance can help protect you against financial loss. Auto insurance is simply a contract between you and your insurance company. You agree to pay the insurance premium and the insurance company agrees to pay your covered losses in the event of a claim. There are seven major types of car insurance coverages available to you: 1. Bodily Injury Liability This vital insurance is required coverage in most states. It applies to injuries that you, the designated driver or policyholder, cause to someone else. It pays the medical bills, lost income, pain and suffering, even funeral expenses for people who are injured in an auto accident (provided you were held responsible for their injuries). Family members listed on the policy are also covered when driving someone else’s car with their permission. It is very important to have enough liability insurance, because if you are involved in a serious accident,
