Today it is a privilege for you to drive, but there is a price tag to having this privilege. Of course one of the things you are required to have by law if you are driving is general auto insurance. The insurance rate that you pay is the premium that you have to pay to a company that provides insurance for the coverage that you need. The insurance coverage helps to protect you from financial losses that can occur because of an accident, and without the coverage you would be responsible to pay for. Of course general auto insurance is far more than just a way to insure your car to pay for repairs if an accident occurs. It is a way that you can keep yourself safe financially. It can help you to offset costs that come with lost wages if you are injured, bodily injury to others or yourself, lawsuits that happen after an accident, repairs to your vehicle, and benefits paid to survivors if someone is killed in an accident. One type of general auto insurance that you can consider is liability insurance. It is important that you understand this type of coverage and all it involves. This type of coverage is made to keep yourself and any assets you have safe if you injure other people or cause damage to property when driving your vehicle and you are the one that is reliable. There is both bodily injury liability as well as property damage liability. The bodily injury liability coverage will protect you if you are at fault in an accident when someone is killed or injured. Then there is property damage liability coverage. This will cover the cost of damage you do to someone's property when driving your vehicle. This could include damage to the land, damage to a mailbox, a parked car, or even damage to a fence. Another level of coverage you may have heard of when it comes to general auto insurance is collision coverage. You may have heard of comprehensive coverage as well. Many people get these two coverage options confused. Comprehensive coverage will cover anything that happens to your car that is not caused by a vehicle accident. This can include coverage for when vandalism occurs, when a fire occurs, for hail damage, flood damage, or it can cover you if your car is stolen. Then there is collision coverage. This provides coverage when you do collide with another car or object and no matter who is at fault, with this coverage your vehicle will be covered. When you go with collision and comprehensive coverage, usually the insurance company will not be paying for the entire loss. Most policies will come with a deductible that you have to pay. Once you pay the deductible, then payment from the insurance company will go into affect. If you do $1000 damage to your car and your deductible is $300, you'll pay the first $300 and the general auto insurance company will take care of the rest.
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