Auto insurance is a kind of insurance designed for vehicles, especially automobiles. Its main function is to offer financial coverage against physical damage or personal injury caused by road accidents and also against liability that can arise out of other incidents in a car. The auto insurance policy helps a person to protect his assets, such as his home, against damages and injury that may result from an accident. The insurance is typically paid by a person’s creditors or by the person himself in cases of accident. It is mandatory in many areas, such as California, where motorists must have a valid insurance card and have met certain requirements.If you’re looking for more tips, Miller-Hanover New Oxford Office-Auto Insurance has it for you.
Auto insurance covers damage caused due to collision, fire, theft, vandalism, and malicious intent. It also covers injuries caused by vehicles operated by the insured, as well as any passengers or passers-by. Medical bills and rehabilitation expenses incurred by people due to accidents are covered by car insurance. For instance, if a child suffers serious injuries in an automobile accident and if his parents had no insurance or had previously failed to obtain adequate protection for their son, then only the child’s parents will be able to file a claim for compensation. In such cases, the vehicle on which the accident occurred is deemed to be the “common property” of both the insurer and the child, who would be entitled to receive payment from the insurer based on the claim value of the vehicle.
Car insurance is usually required by law. However, many people consider it a nuisance to have to purchase such insurance. Many insurers provide low-cost plans for people who want to protect their investments but who cannot afford high deductibles and other out-of-pocket expenses. Some of these plans also provide comprehensive coverage for most accidents, regardless of the extent of the damage.