How Does Auto Insurance Work?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaAn auto policy is a package of coverages. The customer can select all or some of the coverages available. The most important coverage is public liability and property damage. Your state probably requires this coverage on every car using the public roads, but since not everyone obeys the law there is another section of coverages for uninsured and underinsured drives coverage in case you are in a collision with someone without insurance or with inadequate insurance. Another major section is physical damage. Your lender usually requires that you carry this coverage. It restores your car after you pay the deductible for a wide range of events. There are additional coverages and services that are frequently included in the policy but these are the main coverages.Answered on May 9, 2014flag this answer
21750 POINTSview profileJim WinklerCEO/Owner, Winkler Financial Group, Houston, TexasThat is a great question! Auto insurance is designed to protect you from a number of potential risks. Every driver is expected to have insurance before getting behind the wheel, and the penalties for not doing so are pretty stiff. The costs of the policies can vary widely, based on the coverage package and the amount of deductible that you choose. Thanks for asking!Answered on May 10, 2014flag this answer
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