In most states, you must legally have some form of car insurance to be behind the wheel. There are different types of car insurance for you to choose from, and the amount of coverage that you are required to have varies from state to state.
If you are trying to save money then you will probably want to stick to the most basic car insurance that still fits the legal requirements of your state. Usually the minimum coverage required by states is liability insurance. Here is how liability insurance works:
If you are involved in a car accident, you make a claim with your insurance company.
If the accident is your fault, then your car insurance company will pay for the damage incurred to the other person’s vehicle, this is commonly known as property damage. Liability insurance does not cover damage to your own car.
Hopefully, no one will get hurt if you are involved in a collision.
However, if a car accident is your fault and the passengers in the other vehicle must seek medical attention as a result, your liability insurance policy should cover the fees for their hospital visits and doctor’s appointments. These types of costs are commonly referred to as bodily injury. Liability insurance does not cover your own medical costs.
There are many different add-on policies that you can purchase in addition to liability insurance so that you have more coverage.
Discover how to find the cheapest annual premiums for basic and more comprehensive car insurance.