Auto basics - What is auto insurance?

What is auto insurance?

Whether you're a new driver or just wanting to know a little bit more about how and why, it's good to start with the basic definition of auto insurance. In short, car insurance is an agreement between you and your insurance provider about what will happen in the event of an accident. It protects you from financial loss in the event of an incident covered by your policy.

Auto basics - What is auto insurance

Instead of being hooked to things like repairs, replacement costs and medical bills, you pay a car insurance premium to your insurance provider and they will help cover costs based on the coverage and limit you choose.

Your car insurance policy works as a contract that determines what the insurance company costs is responsible, and under what circumstances. In exchange for this service, you are required to pay monthly insurance bill (or "premium") to your insurer.

Although the concept of insurance policy is quite simple, the accident is nothing but. That's why it's important to know how auto insurance works, what kind of car insurance covers and how to choose the right protection for you.

How does it work when buying a car insurance?

Here's an overview of how a car insurance process works:


Start by getting a quote.
 "Collection" is another word for car insurance estimates. Based on the information about you, your history, your car and the type of car insurance you want to buy, the insurance provider cites you the price (also known as your "insurance premium"). When you get a quote with Whole Country, it is always free and there is no obligation to buy. You may be eligible for discounted car insurance rates.

Choose the type of insurance you want.
Obligation insurance is mandatory for all U.S. drivers, though the amount and type of cover required depends on the laws of your country. Although some drivers choose only the country's minimum coverage, those who have additional coverage can provide additional protection on the road.

There are also specific types of insurance that you can choose, such as Classic Car Insurance.
If you value classic, classic car insurance coverage is specifically designed to meet your unique needs so you can strike the road with the right protection.
Choose the amount that can be deducted.

 The deductible is the amount you are responsible for paying for the pocket in the event of an accident before your insurance comes in. For example, if you have $ 500 deductible but your vehicle has a $ 1200 damages, you will pay the first $ 500 insurance provider you will pay $ 700 (if the accident is covered under your policy). Note that higher deductible means lower insurance premium, but it may also mean paying more than pocket in case of damages.

Buy auto insurance. You may choose to pay your annual premium in advance, or pay monthly. Remember to always have your insurance card (or "proof of insurance") with you every time you drive.

In the event of an accident, file a claim with your insurance company as soon as possible. "Claims" is the process of giving your insurance provider all information about the incident so they can determine whether it is or is not covered, and how much damage they can repay to you. Learn more about auto insurance claims.

Our insurance term glossary can also be a useful resource for those who want to learn the basics of auto insurance. You can also start the collection and start protecting yourself with the right auto insurance policy today.

The terms, definitions and explanations of insurance are intended for informational purposes only and in no way replace or modify the definition and information contained in an insurance contract, policy or individual declaration page, which governs it. Such terms and availability may vary by state and exemptions may apply.

Discounts can not be used for all policy protection.

>>>Tips, Tricks, And Advice On Auto Insurance