One of the most memorable days in a person’s life is the day they first step foot out of the license bureau with that crisp, fresh driver’s license in their hand. That day is the day that first marks a person’s independence. On the other hand, however, that is usually the first day in a person’s life when they are now held accountable for paying bills. Once a person makes the decision to drive, from that day forward that person makes the decision to carry car insurance . In fact, it really isn’t even much of a choice. In this country, if a person doesn’t have car insurance , then they can actually get in serious trouble.
Why does a person need car insurance ? Well, despite the fact that it is illegal to not have it, car insurance is very valuable in the event that anything happens to one’s car . There are multiple tiers of car insurance , depending on a person’s income, the type of car driven, and what options he or she chooses. Each of these tiers offers different coverage options, and in addition there are a ton of value added features.
The most basic of all car insurance options, which is required by all insurance plans, is liability only. This covers the damage that a person does to anyone else’s property or vehicles. This basic coverage doesn’t necessarily offer the person with the policy much protection in the event something happens to them or their car, but when they hit another car, or damage someone else’s property, this policy takes care of it. Liability insurance covers a person’s bases so that they are not held personally liable for an accident they cause. Every driver has to have liability insurance if they drive, even if they don’t own a car .
If a person opts for more coverage, they can choose collision and comprehensive coverage, also known as having ‘full coverage.’ Collision coverage covers the damage done to an insured person’s vehicle, regardless of fault. There is a deductible (it can range from $0 to $1,000) and once this deductible is met, the insurance will take care of all repairs. This insurance is required if a person owes money on their car , per the terms of their auto loan. Comprehensive coverage covers things that happen outside of the scope of collision insurance . For instance, if there is a fire or someone breaks into a person’s car, comprehensive coverage takes care of that.
Insurance is mandatory, but a person can shop around and build the perfect policy for their situation. Not everybody needs full coverage, and some people choose to add more value-added features than even listed above, such as tow coverage and rental car reimbursement. Regardless, anybody who ever wants to drive needs car insurance and it is in their best interest to find the policy meant for them.