Auto insurance is a policy that is often mandatory for a person to buy if he wants to drive a vehicle of any kind. It protects people in several situations if an accident ever occurs with the car. The minimum amount that drivers have to put on their cars is called minimum liability. It covers the victims if the driver gets into an accident. The insurance company will pay for medical bills for the victims, auto repairs and such things like that. The insurance person can also opt to buy additional coverage such as comprehensive and collision coverage. Comp and collision coverage overs things like vandalism, theft and other issues. Insurance companies sell additional insurance items like dental coverage, as well.
The way it works is that the insured person pays a premium every month to have insurance. The cost of the premium depends on several factors such as the vehicle owner’s driving record, the type of car he has, the history he has with accidents and DUIs, the state and so on. The person pays the same premium every month for the duration of the term unless he or she pays the whole premium at once. If an accident occurs, the insurance person has to call in and complete an insurance claim or start it online. The insurance company will then begin to investigate the matter. If it finds that the insured driver was not at fault, it will most likely pay the crime. The driver can then get his car fixed after he pays the deductible and get back on the road in no time. The deductible can be anywhere from about $250 to several thousand dollars. It depends on what the consumer chooses in the beginning when he chooses the policy. He can choose a lower deductible, but it may make the premium higher.