Today I’m continuing my insurance series with a detailed look at auto insurance. So far I’ve tackled the big giants of health, life and homeowner’s insurance. Auto insurance is no less important and remains an important piece to a well-maintained insurance plan.
You are going to wreck your car and cause damage. In fact, the car insurance industry estimates the average driver will file a claim for a collision every 17.9 years. So a 16 year old with a new license can anticipate having one accident by age 34 and another by age 52 and yet another by age 70.
But auto insurance is not just about recouping monetary loss for a damaged vehicle. There are also people driving and riding around in these cars that get into these accidents.
These people get injured.
Many even die.
The losses you could face from medical bills or the potential lawsuits resulting from these accidents could bankrupt you.
That’s how serious finding the right type of auto insurance is for your financial security.
What Is Auto Insurance?
Just like all the other types of insurance, auto insurance is a contract you agree to with an insurance company. In exchange for a monthly premium you receive coverage from the insurance company in case of an event.
In general, auto insurance offers protection against these issues related to your car: