What is Personal
Auto Insurance?
A personal auto insurance is a policy that helps vehicle owners get protection from the costs involved in getting into a vehicle accident. You never know when an accident will happen—if you have yourself covered with an auto insurance policy, then you don’t need to worry about the inconvenience paying the un-budgeted expense out of your pocket. If you pay your insurance premiums regularly, then the insurance company will bear the cost of the damages that occurred.
A personal auto insurance policy provides coverage only for privately owned vehicles—any vehicles that is operated for a business will not be covered under this policy. The insurance provides coverage for all kinds of economic losses incurred of which includes bodily injuries and/or property damages caused to the other party. The premium for an auto insurance policy will largely vary based on the age of the owner, gender and years of driving experience. Previous history of being involved in an auto accident or any traffic violation may increase your premium amount to some extent.
In most of the states, having an auto insurance policy for at least collision is compulsory. The premium amount may be higher if you are looking to opt for full coverage. Generally a personal auto insurance policy is valid between 6-12 months and needs to be renewed before the policy expiration date. The requirements for an auto insurance may vary between various states. Generally the coverages include Property damage, liability and medical costs.
Who needs Personal
Auto Insurance?
Generally when it comes to a vehicle insurance, every individual who operates a vehicle will need personal auto insurance. You need a car insurance policy the moment you step inside to drive a car. It is illegal to drive without insurance and you will feel the burden when you get into an accident and you don’t have an insurance.
But if you are a teenager and are covered under your parent’s or your spouse’s insurance policy, then you don’t need to have a personal auto insurance policy of your own. But if your parents policy doesn’t cover the vehicle you are driving, then you better get an insurance policy of your own, as most of the policies are generally tied to a certain vehicle or a couple of vehicles. And moreover if you are working abroad for few months and your vehicle is garaged, then some insurance companies can give you some relief from the premium. But make sure that when you return, you start paying the premiums properly to stay protected at all times. Never assume anything about a personal auto insurance and always make sure you have an auto insurance that covers your name and the vehicle you are driving.