Auto insurance provides for the repair or replacement of vehicles damaged by various hazards. While nearly all policies cover accidents, some also provide some coverage for vandalism or weather damage, the policy may also include towing services.
A person might buy an auto insurance policy for different reasons. An auto Policy can protect you from large expenses if your car is badly damaged in an accident. Many people choose to add coverage that provides towing services for you if you are stranded with a vehicle that is broken down or out of fuel. Some insurers also offer coverage for the cost of a rental car while the insured vehicle is being repaired.
Insurance is mandated by law. After an accident, the owner of a car is liable for any damage done to other property by his vehicle. Since accidents can cause very large amounts of damage, most states require that all motorists' cars be insured. This protects the motorist, who will not have to pay for the damage caused, and those whose property was damaged. Banks, auto dealers or others who finance cars may also require that their borrowers maintain insurance on their vehicles. If the car is damaged beyond repair, the note on it can be paid off.
People as well as objects can be damaged in an auto accident. Since medical care for serious injuries can be quite expensive, it is a good idea (and in most areas the law) to carry insurance that covers personal injury. Besides covering merely the driver of the covered vehicle, the passengers, and the occupants of the other involved vehicles, it can also cover injured pedestrians . These coverages can be expanded with Endorsements to your Auto Insurance policy.