Hello, did you know about automobile insurance and how does it work? It is very important to know about automobile insurance and also know that how does it work.
It is most important things if you have car and you didn’t aware about automobile insurance and how does car insurance work. In this article I talk about automobile insurance and how does it work. So stay connected with me and read this article.
What Is Automobile Insurance
Vehicle insurance also known as car insurance, motor insurance, or auto insurance is insurance for cars, trucks, motorcycle and other road vehicles. Its primary use is to provide financial protection against physical damage or bodily injury resulting from traffic collision and against liability that could also arise from incidents in a vehicle.
Vehicle insurance may additionally offer financial protection against theft of the vehicle and against damage to the vehicle sustained from events other than traffic collisions such as keying weather or natural disasters and damage sustained by colliding with stationary objects. The specific terms of vehicle insurance vary with legal regulations in each region.
How Does Car Insurance Work
Your auto insurance policy is an agreement between you and the insurance company. As long as you continue to pay for coverage, the provider will cover the cost of injuries, vehicle repairs and other types of property damage.
When you purchase car insurance you’ll choose coverage limits that determine the amount of financial protection you receive from your policy. As you increase your policy’s car insurance limits the money you owe called your insurance premiums goes up.
You use your insurance when your car is damaged, stolen or after an accident with another driver. While the source of damage and who was responsible affects how the claims process works and whose insurance pays for damage generally you make a claim to avoid paying for the costs of an accident yourself. Also insurance follows the car which means if a friend or family member borrows your car and causes an accident your insurance policy will cover the damage.
An insurance company can choose to pay you or a mechanic for the cost of repairing your car. If your car is a lease a claim may be paid to your leaseholder or creditor.
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