Car insurance is something that every driver needs to have.
It's not just a recommendation, it's the law.
Why do people need to have car insurance? Well, the most important point is that it protects a driver from civil liability in the event of an auto accident.
Insurance is a way of making sure that people are financially responsible for their own mistakes.
There are many other benefits to having car insurance, however, and there are many different coverage options.
First, let's talk about the backbone of any automotive insurance policy: liability insurance.
No matter what other options a person chooses, he or she needs to have, at minimum, liability insurance.
Liability insurance covers other people and other people's property in the event of an accident up to a certain, predefined limit.
That means that if a person hits another driver's car and is determined to be at fault, then the insurance will pay to fix the other person's car and it will cover personal injury.
If a person owes money on a car or the value of the car is high enough that it is worth insuring then a person may opt for collision and comprehensive coverage as well.
Collision coverage is the insurance that covers a driver's own personal vehicle in the event of a collision that is determined to be his or her fault.
A person who chooses this coverage will choose a deductible (anywhere from $0 to $1000) and in the event of an accident, the insured party is only responsible for the deductible and the insurance will take care of the rest.
Comprehensive insurance is similar to collision, except that it covers damage to a car from most things other than a collision.
For example, hail damage, fire, theft, or vandalism would be covered under comprehensive coverage.
In addition, insurance companies offer certain services like tow and rental coverage and many different payment options.
Many insurance companies allow a person to split their insurance premium up into either monthly payments with an installment fee or a person can pay for six months to a year up front, with no monthly payments.
Insurance companies are also making it easier and easier to pay online and for the insurance payments to come out of a person's account automatically.
Insurance is definitely a "necessary evil" but with all of the options and all of the companies offering insurance, there's definitely a reasonable policy for every driver out there.