Auto insurance is required by all fifty states. The requirement is usually not enough to cover the possible damages to someone else’s property or if you injure someone during a motor vehicle accident. It is usually recommended carrying $100,000 liability per person and $300,000 liability per accident on your vehicle. This type of insurance will also cover $50,000 liability if you damage another person’s property. Anything less than this type of insurance might not be enough. If you do not carry enough auto insurance your personal assets might become at risk. This means if you did not have enough insurance to cover the loss the injured person or person whose property you damaged could go after your personal assets.
There are usually four types of insurance to carry on an auto policy. This is liability. Liability insurance is required by all fifty states. There is also personal injury protection insurance. Personal injury protection insurance will cover your injuries in the event of a wreck. Person injury protection insurance is not required by all states. There is comprehensive and collision insurance. Collision insurance will pay for the repairs on your vehicle should you get into a motor vehicle accident. Comprehensive will cover loss such as stolen vehicle or fire. The fourth type of insurance that goes into a policy is the uninsured motorist insurance. This type of insurance will cover you in the event that someone else is at fault but does not have insurance. This insurance is required by some states.
What kind of insurance you need for your vehicle and how much will vary from accident to accident. There is no right or wrong answer to this question. However, if you are caught driving without the minimum liability insurance in your state you could be looking at paying out-of-pocket in the event you are in an accident. Also, some states can suspend a person’s driving privileges if he or she is caught driving without insurance.
There are many extras that can be added to an insurance policy. These extras include but are not limited to roadside assistance, rental car insurance, and gap insurance. These are just some extras that will either bring the policy premium up or down depending on if you include or exclude them.
Comprehensive and collision auto insurance aurora co is optional and in all states. Comprehensive and collision insurance will cover a motorist’s vehicle in many instances. However, it will not cover a vehicle in all instances. If you need assistance such as roadside assistance, like a tow or gas to be brought to you, comprehensive insurance does not cover this.
The time you will be required to carry comprehensive and collision insurance will be when you finance or lease your vehicle. The finance company or lease company will require you to have comprehensive and collision on the vehicle. Most of the time these companies will require you to have no more than a one-thousand-dollar deductible on your vehicles insurance. In fact, when you lease and finance a vehicle, it is the finance or lease company who owns the vehicle.