What You Need to Know About Car Insurance

Car insurance is mandatory in most states, but it does much more than fulfill legal requirements. It protects you from liability in accidents and covers your expenses when your car is damaged by events other than a collision.


Your premium is affected by many factors, including your credit history, driving record and past c방문운전연수 laims. You can choose additional coverage options, such as a deductible and limits.


Liability car insurance covers others’ costs when you are at fault in a traffic-related accident. It pays for things like medical bills, lost wages and funeral expenses. It can also cover property damage, such as when your car hits a fence or mailbox. Some states require that drivers carry a minimum amount of liability insurance. It’s a good idea to buy more than the minimum, since lawsuits can award staggering amounts in damages.

Other types of car insurance can cover your own costs, such as collision and personal injury protection (PIP). These are optional but may be required if you lease or finance your vehicle.

Some factors that affect liability rates include your driving record, credit score and where you live. Drivers with a clean driving record and good credit are typically considered lower risks than those who have a history of accidents or tickets. Living in a busy urban area can also lead to higher premiums, as can the type of vehicle you drive.방문운전연수

Some states allow you to buy a policy that includes both collision and comprehensive coverage, which can help you save on your premium. Other optional coverages include rental reimbursement, gap insurance and mechanical breakdown coverage.


Collision coverage, or sometimes comprehensive coverage, pays to repair or replace your vehicle if it’s damaged in an accident that is your fault. It covers things like hitting another car or rolling your vehicle down an embankment. Typically, your insurance company will also require you to pay a deductible before they start paying on claims. The cost of this deductible can vary by insurance company. Some offer “disappearing deductibles” which reduce your deductible by a certain amount each year that you don’t file a claim.

Collsion insurance also helps cover damage to your car from uninsured or underinsured drivers. This is important because if the at-fault driver doesn’t have enough insurance to cover the cost of your repairs, you could find yourself without a car.

While no state requires collision insurance, your lender may require it if you’re leasing or financing your vehicle. And if you have an expensive vehicle, it can be worth the extra cost for peace of mind.

Ultimately, it’s up to you whether you want to purchase collision and comprehensive auto coverage. You can estimate your vehicle’s value and subtract your deductible to see if it makes sense for you. Keep in mind that if you choose not to purchase comprehensive and your vehicle is stolen or damaged, you will have to deal with the other driver’s liability insurance through a process known as subrogation.


The comprehensive section of your car insurance covers damage to your vehicle from non-collision events, like fallen tree branches or animal attacks. It also pays to repair or replace your vehicle if it’s stolen and is declared a total loss.

The deductible (which you choose) is the amount you have to pay before your insurance company starts paying on a covered claim. The higher the deductible you have, the lower your premium will be.

Some comprehensive policies include medical and funeral expenses for you and your passengers regardless of who caused the accident, up to the policy limits. Additional drivers and family members can usually be added to your policy for an additional cost.

Comprehensive coverage is almost always a good idea, especially if you lease or finance your vehicle. In fact, most lenders require it along with collision coverage.

Whether or not you get comprehensive and collision coverage will depend on a number of factors, including the value of your car, where you live, and how much risk you’re willing to take. However, the general rule is that you should consider dropping this coverage if your car’s value reaches the point where the annual cost of the premium and deductible is greater than what you would expect to receive in a total loss payout.

Uninsured/Underinsured Motorist Coverage

It’s illegal to drive without car insurance in most states, but many people do. That’s why uninsured/underinsured motorist coverage — also known as UM/UIM coverage — is so important. It’s typically bundled into your policy with the same limits as your liability coverage.

UM/UIM can help pay for your injuries and property damage when an accident is caused by an uninsured driver, or (in some states) a hit-and-run driver. It can also kick in when the other driver has liability insurance but not enough to cover your damages, or their coverage isn’t active at the time of the crash.

Your UM/UIM coverage can be used to cover your medical bills, lost wages and pain and suffering. It can also pay to repair or replace your car, and other property. It’s usually available with limits of $25,000 per person and $50,000 per accident, but you can sometimes get stacked coverage for a higher amount.

UM/UIM is a great addition to any car insurance policy. It’s affordable and can save you from having to pay for damages that aren’t covered by the other driver’s insurance. Plus, it’s easy to add and remove depending on your needs, so you can always be prepared. You can easily compare UM/UIM quotes online to see how much it might cost you to add it to your policy.