Auto insurance goes deeper than just state laws. There is a real benefit of being insured; the value is that an insurance company assumes your risk based on the coverage purchased. Not having to worry about the risks you have passed on should make someone exhale and focus their worries where attention is needed.
In exchange for premium (money), the carrier will take on the policyholder’s risks and pay for losses in accordance with the coverage purchased. This allows consumers to protect themselves against devastating liabilities (damages caused to others) which can take one off track and change one’s life dramatically.
In one circumstance, a policyholder who recently purchased an auto insurance policy was involved in an accident injuring another driver with two passengers and totally damaging both vehicles involved. The combined bodily injury liabilities incurred added up to roughly $47,000 and the vehicles combined sustained around $37,000 in damages.
In the above circumstance, a policyholder with liability limits of 25/50/25 and physical damage coverage was paying $67.00 per month in insurance premiums. Since the policy was active, the insurance company paid, according to the coverage limitations, the full bodily injury expenses of the occupants in the other vehicle as well as both vehicle repairs.
In exchange for $67.00 per month, the total amount paid was $114,000. Of course the insurance companies do not pay out on all policyholders since they do not all have claims; however, those who are involved in an accident have been “saved” by the insurer and can continue their daily lives.
The auto insurance policy is a valuable tool to manageyour losses and make sure an unexpected situation does not take you off your path of life. For a small premium, a lot of valuable coverage can be purchased. It is advised that one brush up on their knowledge by learning about in order to be better prepared when choosing the right protection.
Consumers can get quotes on from a variety of carriers by completing one simple form. Visit OnlineAutoInsurance.com and compare quotes on all the types of coverage, free!