The main benefits of having car insurance include financial protection from costs associated with accidents and lawsuits, and assistance from the insurance provider in finding a reliable repair shop in the event of an accident, reports Esurance. Depending on the coverages, car insurance also pays for accident-related injuries, nursing care while recovering from an accident and funeral costs.Continue Reading
Car insurance policies with high-limit liability coverage, comprehensive coverage, collision coverage and medical payment coverage provide significant savings when an accident occurs, according to Esurance. Insurance providers are responsible for contacting the other driver's insurer, recommending a trusted repair shop if needed, guiding policyholders in making claims, and settling the claims justly.
A car insurance policy generally consists of six types of coverage, states Insurance Information Institute. Property coverage provides compensation if the policyholder's vehicle gets damaged or stolen, while liability coverage covers costs associated with the policyholder's liability due to physical injuries or property damage. In addition to medical costs for injury treatment and rehabilitation, medical coverage sometimes pays for lost wages due to a vehicle accident. Car insurance policies often last for six months to one year.
Maintaining a certain amount of car insurance, typically financial responsibility bonds or liability coverage, is essential in most U.S. states, notes Esurance. Driving without adequate insurance coverage may lead to license suspension or payment of fines.Learn more about Vehicle Insurance