Car insurance is a contract between you and an insurance company that provides financial protection against physical damage or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. It helps cover repair costs, medical expenses, and legal fees, offering peace of mind while driving.
Car insurance not only fulfills legal requirements but also offers financial protection from costly repairs and medical bills. It provides liability coverage to protect your assets if you are found at fault, and can also offer roadside assistance, rental car coverage, and protection against uninsured drivers.
Several factors influence your car insurance premiums, including your driving record, age, vehicle type, location, credit score, and coverage limits. Safe driving, good credit, and choosing appropriate coverage can help lower your costs.
If you're involved in an accident or experience damage, notify your insurer promptly to begin the claims process. You'll need to provide details, submit necessary documents, and cooperate during investigations. The insurer evaluates the claim and covers eligible expenses according to your policy.
Car insurance policies typically exclude coverage for intentional damage, racing, using the car for commercial purposes (unless specified), and wear and tear. It’s important to read your policy carefully to understand these limitations.