Car Insurance, Insurance Policy

In most states, it is illegal to drive without car insurance. Thus if you are a car owner, automobile insurance is a must. The right kind of car insurance is any driver's second thought, the first logically being the safety of their car. Car insurance makes such driver's nightmares as road accidents and car-jacking not so desperate. Car insurance is a contract between you and your insurance company, in which you agree to pay the premium, while the insurance company agrees to reimburse your loss as it is stated in your insurance policy.

The insurance policy provides different kinds of coverage.

Bodily Injury Liability is applied to injuries caused to someone in an accident by the policyholder. If you are involved in a serious accident, you will need good liability insurance in case you are sued for a large sum of money.

Medical Payments coverage pays for injuries the policyholder and his passengers can get in a car accident.

Property Damage Liability pays for damage you can cause to another driver's car. It can also include damage to other objects of property your car might hit, for instance fences, telephone booths, lamp posts, etc.

Collision Coverage pays for damage to the policyholder's car, which may result from a collision. It should be noted that even if you are to blame for the collision, the costs of repairing your car will be reimbursed to you.