About Auto Insurance

The Law

If you own a vehicle, state laws require you to have auto insurance. This site tells you enough about auto insurance that you will understand it well enough to be considered a knowledgeable insurance consumer.

Why are such requirements in place? They are not for your protection. They are for the protection of the drivers and owners of other vehicles.

About Auto Insurance: Liability Insurance

Here’s an example: Let’s say you are a driver of modest financial means. You caused an accident. The other vehicle sustained damage which cost $10,000 to repair. Worse yet, the occupants of the other car required medical treatment which cost $45,000.

They did not cause the accident so they deserve to recover their expenses. But who is going to pay? Because you caused the accident, you are responsible. Would you personally be able to come up with $55,000? Many car owners could not come up with such a large sum. So that injured parties can recover damages, states require that every vehicle be insured to cover this liability.

Liability insurance will pay the expenses for which you are responsible. The other driver is protected.

About Auto Insurance: You Are Protected

You, too, are protected because you do not have to pay the $55,000 personally. The insurance company from which you purchased the liability insurance will pay it. You are protected from this large financial liability. Your cost: a few hundred dollars for a year’s worth of protection from huge claims. Your family is protected from financial hardship or ruin.

Liability insurance is the required component of auto insurance. It provides financial protection to you if you incur a financial liability due to an accident.

Learning About Auto Insurance

There are lots more things about auto insurance which you should know, but this covers the most important part and the only required part, liability insurance.

Photo of 1983 Honda CB-100C

1983 Honda CB-100 Custom, Insured!

As you learn more about auto insurance, you’ll find that you can shop for auto insurance or motorcycle insurance or RV insurance right here on the Internet. In fact, you can probably learn enough about auto insurance right here online to make you a very informed buyer!

You can learn a lot about auto insurance by talking with a local insurance agent. However, it’s always good to have an idea as to what the answers might be before you ask the question! The Internet is a great place to do insurance research.

You can learn a lot about auto insurance right here!