Auto insurance is one of the most popular and necessary plans of insurance available. As the traffic goes increasingly more dangerous and cars become more essential for our daily lives, auto insurance plans become more indispensable. The main purpose of having auto insurance is to protect you and your family of utmost financial losses during a crash or any kind of car accident. As any type of insurance plan, auto insurance refers to a contract between you and your insurance company. Every company has its own specifications and features for each plan, and thatís why itís essential to do some research to determine what plan would work better for your case.
Most auto insurance plans include three different types of features:
Medical coverage: is a feature which pays for any emergency medical treatment required after a car accident, and posterior rehabilitation treatment. It also covers funeral expanses and lost wages in extreme cases.
Property coverage: it pays for any damage in your vehicle when involved in a car accident, and also protects from theft.
Liability coverage: when others are involved in property damage and/or bodily injury, this feature from your auto insurance plan pays for your legal responsibilities.
It is important to say that most of the auto insurance plans in the USA work on liability coverage only, while the so-called comprehensive plans cover all the three topics. Liability insurance plans cover the driver, so if driving a car belonging to a third party, you will be covered by the auto insurance plan from that person, not yours.
Auto insurance in general refers to plans from six months to a year. The policy holder needs to be notified by the company when the plan expires in order to renew the contract and to avoid being uncovered.