How to Enjoy the Benefits of Auto Insurance Coverage

Auto insurance is an agreement between an individual and an insurance agent. Upon signature and payment, the agent provides a specific amount of financial coverage to the individual should they be involved in an accident. Although some people cringe at the thought of this payment month after month, the benefits of car insurance should make you more than happy to protect yourself with the small amount.

Coverage is Mandatory

State auto insurance is required in 48 of the 50 U.S. states and Washington, D.C. There are minimum amounts of coverage mandatory to be carried at all times, with these amounts varying by state. Failure to carry this coverage can result in suspension of driving privileges, increased auto insurance costs and huge fines. In some states the misdemeanor offense is punishable by time in jail.

Minimum insurance amounts cover financial loss related to injuries, property damage and medical payments that result after an accident. Most minimum state auto insurance policies cover these losses only for the other party involved in an accident that you are at fault for, though additional policies can be purchased to provide yourself protection. Uninsured motorists is one of the most recommended (and required in some states) policies, and collision, comprehensive and others are available.

Protecting after an Accident

Benefits of auto insurance begin from day one. Not only does the coverage protect you should you be involved in an accident with another car, it can also protect you from accidents involving other objects. Your policy will look something like this: 25/50/15. This means you will have $25,000 in Bodily injury protection for one person injured, with a cap of $50,000 for all parties involved; and $15,000 in property damage protection. This means that, once your deductible amount sets in, the insurance company will pay up to these amounts for accidents. That is money that you are responsible for and would otherwise be forced to pay out of pocket. An auto insurance policy protects you from financial disaster!

Having state auto insurance not only keeps you out of legal trouble, it ensures that you aren't spending the rest of your life paying for an accident. In addition, auto insurance gives you the confidence to get behind the wheel of your car with peace of mind no matter where you are heading.

The benefits of your auto insurance can be increased with the right company. Many offer discounts that can chop off 30% or more of your costs of insurance premiums. These discounts include safe driver discounts, multi-policy discounts, safe-driver discounts and many others. Ask your agent for these discounts; they may not always offer them to you.

The way you Pay your Policy could Equal more Discounts

Policies can be paid each month, every six months or annually. Your price can be affected by the number of payments that you make, with discount provided when you pay more at once. Before you purchase a policy, comparing is always a step you must take. Comparing is fast and easy to do on the web, instantly giving you the best prices for your coverage. Because auto insurance costs are based upon many factors, the amount you pay will vary from the next person's payment.

As you can see there are far more benefits to state auto insurance than you may have realized to begin with. A few bucks per month and all of these great benefits, and so many more, could all be yours day after day, week after week and month after month. Do not moan the next time you need to choose a policy; instead be grateful you were given the opportunity to protect yourself!

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Title Post: How to Enjoy the Benefits of Auto Insurance Coverage
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