Most states will require drivers to have automobile insurance on their vehicles. Depending on the state you are in, you could face a few different consequences if you do not carry active insurance for your car. Insurance is always a difficult topic so it may be hard for some to understand what it is and why you need it. 

What Is Automobile Insurance?

Simply put, insurance is a contract you enter into with an insurance company. For example, you meet with an automobile insurance agent, and they agree to pay up to a certain amount of money in damages if there is an accident, but you have to pay a premium every month or every six months. 

If you do experience an accident, you will most likely have a deductible that you will have to pay, but anything over that is covered by your insurance. For example, if you have a $1,000 deductible and you get in an accident costing $10,000 for all damages, you will only have to pay the $1,000; your insurance provider is responsible for the rest. 

Why Do You Have to Have Insurance?

It may seem silly to pay a premium to an insurance provider when you do not think you will ever be in the position to use your insurance policy, but they are called accidents for a reason. Automobile insurance is required in almost every state as a way to protect the victims of an accident. Though, insurance coverage can help protect both parties. 

If you do not have insurance and you get in an accident, the cost is going to be high, and it is like you will not be able to afford to cover both your and the other party's damages. With insurance, the person that is not at fault is guaranteed assistance and the person at fault does not have to pay the entire cost. 

What Does Automobile Insurance Cover?

Each insurance plan will differ slightly depending on the coverages you pick. 

You can choose any or all of the following coverages for your own insurance plan:

• Collision. This is coverage for a collision with another vehicle, property, an object, etc. 
• Comprehensive. This is coverage for non-collision incidents (e.g. theft, vandalism, fire, etc.).
• Glass. This is separate coverage for all windows, sunroof included. 
• Bodily injury liability. This is coverage to help with the costs of any injuries or death. 
• Property damage liability. This is coverage for someone's property you may have damaged while driving your vehicle. 
• Roadside assistance. This is coverage that can cover the cost of a tow truck, tire change, jumpstart, etc. 

The more coverage you do have on your vehicle, the higher your premium will be. It is better to be safe than sorry. For more information on automobile insurance, contact a professional near you.