What is Auto Insurance and Why Do You Need It?

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Auto insurance is a very important factor in the life of anyone owning and driving a vehicle, whether it is an auto, a truck, a motorcycle, etc.
Auto insurance is your protection against financial risk associated with personal injuries or property damage caused by any type of vehicle accident, theft or vandalism.
It is a mandatory requirement in most states for you to purchase at a minimum amount of liability coverage.
Depending on your states requirements, it may be mandatory for other types of coverage also.
Also, when you purchase a vehicle or even lease one, the lender will probably require that you purchase enough coverage to protect the car itself to protect their interest in the vehicle.
Liability is the type of coverage that will be mandated by your state.
There are two types of liability coverage mandated: 1) bodily injury protects your assets if you are found liable for any accident in which other people are injured or killed; 2) property damage is the type of coverage that pays for the costs of repairing or replacing your vehicle or of the autos or other damaged property of other people.
This coverage also pays for the legal costs of defending you against accident related lawsuits.
It is usually recommended that you purchase more than the minimum coverage mandated by your state.
The following types of coverage are usually optional but still recommended unless you can afford to pay for these types of damages yourself if in an accident: 1) collision pays for the replacement or repair of your vehicle if damaged in an accident and usually carries a high deductible depending upon the age and condition of the vehicle; 2) comprehensive insures your vehicle against damages caused by things other than an auto accident such as theft, fire, flood or vandalism and is also referred to as other-then-collision; 3) uninsured and underinsured motorist coverage insures you against certain losses caused by another driver who has little or no auto insurance and can cover things like lost wages as well and also provides coverage to your passengers and those listed on your policy while riding in other cars or as a pedestrian (unless you live in a "no-fault" state where your own insurance will cover your losses); 4) medical payment coverage or personal injury protection (PIP) covers various medical and funeral expenses for yourself and your passengers as well as those listed on your policy while riding in other vehicles or as a pedestrian.
The above are just minimum descriptions of these types of coverage.
They are all very important for anyone who wants to be fully covered in case of any bad auto accident or damage to their vehicle or injuries to themselves, their loved one or anyone else involved.
For more information you can go on to the internet and research each one for detailed information of each one.
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