What’s Car Insurance?

If you have a car, you must have car insurance. Car insurance protects you from any potential liability should you get into a car wreck.

There are two different types of car insurance. There is liability insurance which covers you should you be in a wreck and another vehicle or someone property is involved, and there is full coverage which covers your vehicle and the other vehicle as well.

If you have a car loan, you’ll be required to have full coverage on your car as this will protect their vested interest in your car. It’s also great because should you be in a wreck, full coverage will cover any dents, dings or other damages to your car.

All states require liability insurance. However, they don’t require full coverage. If you have liability insurance your premium is going to be lower, however, if there is damage done to your car such as running or backing into a tree or hitting an animal, you will have to pay all of the repairs on your car out of pocket.

If you have liability insurance and another vehicle hits you, even if you have Medicaid, their insurance will have to pay for the repairs to your car, however, if you hit them, your insurance is going to pay for the repairs to their vehicle and you’ll still have to pay for the damages done to your vehicle unless somehow you’re both at fault for the wreck.

Car insurance rates will vary and when you pay your premium you’ll receive a document call proof of insurance. You’ll need to keep this with your registration in your car at all times to show to a police officer should you be in a wreck or pulled over for a speeding infraction or some other reason such as a headlight out or something. You can contact your insurance agency for full rates and options on car insurance.