by Hamilton Nationwide Insurance Agency
Why do I need car insurance?
By Tim Hamilton, LUTCF
Insurance laws vary from state to state, but all states require some type of insurance or proof of financial responsibility. Even though it may seem like an "extra" cost, car insurance protects you, your family and your vehicle if you’re ever in an accident or if your vehicle is damaged.
Several factors, including your driving record and insurance history, affect the type of insurance policy available to you. If you have a clean driving record and have been insured in the past, you’ll most likely qualify for standard auto insurance.
Generally, if you haven’t had insurance, or have a less-than-perfect driving record, you can still qualify for auto insurance. This type of insurance is known as specialty insurance.
Your auto policy may include six coverages, each priced separately:
1. Bodily Injury Liability applies to injuries that you, the designated driver or policyholder, cause to someone else. It’s very important to have enough liability insurance because if you’re involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets, such as your home and savings.
2. Medical Payments or Personal Injury Protection (PIP) pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident.
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