Understanding Auto Insurance: Basics And Coverage

​Owning a car has been associated with a sense of liberation and endless possibilities. However, car ownership comes with caution: driving involves huge financial responsibility. Finding the right auto insurance for your car can seem like a huge challenge. Hopefully, as you continue reading this article, you will be able to choose a good policy with adequate coverage at a fair price.

Defining Auto Insurance
An auto insurance policy is, at its most basic level, a contract between a client and an insurance provider. The client agrees to pay a certain price in exchange for the insurance provider agreeing to compensate the client for losses stated in the policy.
 
Auto Insurance Coverage Types
Auto insurance contains different types of protection, as mentioned by the Insurance Information Institute, which is listed below.

Property. This entails damage or theft of your car.

Liability. It is your legal obligation to others if they suffer bodily harm or property damage as a result of your actions.

Medical. This coverage often covers healthcare services, rehabilitation, and, in some instances, lost income and burial costs.

Auto Insurance Coverage Options
Car insurance can protect you and your passengers. So, choosing the correct car insurance for you is essential.

1. Liability for Bodily Injury
   The costs of treating other drivers injured in an accident caused by your negligence are covered by bodily injury liability insurance. You'll also be covered if you drive another person's vehicle with their authorization.
   
   
2. Liability for Property Damage
   You're insured from repair bills if you have this type of liability coverage and cause damage to others' property in an accident. It generally refers to automobile damage, but it can also refer to damage to structures such as buildings, fences, utility poles, and others.
   
   
3. Collision and Other Accidents
   This insurance type covers damage to your vehicle caused by a collision with another car or object. Collision coverage allows you to claim compensation for the cost of repairing your vehicle, minus the deductible even if you're at fault in an accident.
   
   
4. Comprehensive
   This coverage protects you financially against theft or vehicle damage caused by non-accident events like vandalism, falling items, animals, fires, floods, earthquakes, windstorms, and explosions.
   
   There are also other coverage options to explore, such as medical, uninsured, and underinsured motorist coverages.

Nevertheless, Drive Carefully
Accidents happen anywhere, and when you least expect them. With this in mind, even if it increases your monthly expenses, getting auto insurance is vital to help you avoid getting into a financial crisis.

At UG Insurance Brokerage Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (718) 848-7777. Get your free quote today by CLICKING HERE. The coverage discussed is not guaranteed. Please contact our agents to make sure you have adequate coverage and your needs are being met. We are happy to help!