An auto is a small wheeled vehicle typically used for transport. Most definitions of automobiles state that they are run on roads, have seats for eight people and generally carry goods as opposed to individuals. The automobile has been one of the greatest innovations in transportation due to its simplicity and speed. The automobile came into existence when people started using horse-drawn carriages.
However, as time progressed, other invented things like the mule, cart and carriage equestrian vehicles that allowed people to travel more comfortably. People started using wagons to transport themselves and other things such as tools and farm produce to markets. Because of this, the automobile was invented and soon after that auto insurance was created so that people will not get injured in an automobile accident. By creating automobile insurance, motorists are provided with monetary compensation whenever they are involved in automobile accidents that are caused by another driver. This makes it very important for all drivers to obtain the services of an auto insurance company that will provide them with the auto insurance coverage that they need.
There are two types of auto insurance coverage that a person needs to have when they are operating a motor vehicle. The first is bodily injury liability which covers medical expenses and other related costs incurred by the driver and the passengers in a car that gets involved in a traffic accident. The second is property damage liability that covers damage to the other driver’s car or the property belonging to someone else in an accident. Both of these types of coverage are compulsory as part of the law in most states.
Bodily injury liability is one of the mandatory types of auto insurance coverage that a motorist must have. It provides financial assistance to people who sustain injuries in an accident because of the negligence of the driver of the car. The coverage provided by bodily injury liability is calculated based on a set level of monetary compensation. For example, the compensation amount for a pedestrian who gets hit by a vehicle can vary from several hundred dollars to several thousand dollars depending on how severe the injuries are and whether or not the pedestrian had insurance coverage. Property damage liability is also a compulsory type of motorist coverage and provides compensation to those persons and their personal property that get damaged due to the negligence or fault of the driver of a car.
Before obtaining auto insurance coverage it is necessary for people to obtain the right estimate of the cost of the coverage. A person who has good knowledge about auto insurance coverage can calculate his/her own cost depending on the coverage that he/she requires. Getting estimates from different companies is a good way to compare the costs of the coverage. It is always advisable to visit a few insurance companies in person before making a decision because this gives people a chance to ask questions to the representatives about the policy, the discounts available, etc. It also helps people to understand the terms and conditions of the policy clearly.
Most states require people to carry auto insurance in order to operate a vehicle on the roads. However, some states allow people to drive without auto insurance as long they have a minimum amount of liability coverage. Liability coverage will pay for the medical bills, damages to others’ property, etc., that result from auto accidents. It is important to note that auto insurance coverage is different from liability coverage and can be availed of at any time. Therefore, auto insurance should always be obtained prior to the purchase of an auto.