{"id":5713,"date":"2021-07-02T06:51:00","date_gmt":"2021-07-02T06:51:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=5713"},"modified":"2024-11-21T06:45:06","modified_gmt":"2024-11-21T06:45:06","slug":"what-is-car-insurance","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/what-is-car-insurance\/","title":{"rendered":"What Is Car Insurance?"},"content":{"rendered":"\n
When you get a new car, you\u2019ll need car insurance<\/a> to drive legally. But just what is car insurance?<\/p>\n\n\n\n You might not know for sure, especially if this is your first vehicle. And just knowing that you need it isn\u2019t enough. You really should understand how it works so you can pick the coverage that\u2019s right for you.<\/p>\n\n\n\n Below, we\u2019ll explain what car insurance is and how it works so you can feel comfortable choosing the best car insurance for your needs.<\/p>\n\n\n\n Car insurance is a type of coverage that protects you against financial loss related to your car. It reimburses you if you\u2019re in an accident or if your car is stolen. In exchange for this reimbursement, you\u2019ll need to pay a monthly premium to the insurance company.<\/p>\n\n\n\n There are different types of car insurance<\/a>. This lets you pick just the kind of coverage you need based on your state\u2019s laws and your personal preferences.<\/p>\n\n\n\n Nearly every state requires you to have bodily injury liability coverage and property damage liability coverage:<\/p>\n\n\n\n Remember, those two types of coverage are for if you\u2019re at fault in an accident. This means you are the person that caused the accident. By requiring this insurance, states can make sure you\u2019ll be liable if you hit someone.<\/p>\n\n\n\n While these are the main two types of coverage, they aren\u2019t the only ones. You may want to take out additional insurance to protect yourself, your passengers, and your car if you\u2019re in an accident. Some other popular auto insurance coverages include:<\/p>\n\n\n\n About 12.6% of U.S. drivers<\/a> were uninsured as of 2019. As you can already see, this is a bad idea, as insurance provides a valuable resource for drivers after a collision.<\/p>\n\n\n\n Are you still asking yourself, \u201cwhat is car insurance, and how does it work?\u201d Don\u2019t worry. We\u2019ll go more in-depth now so you can understand how car insurance protects you.<\/p>\n\n\n\n Let\u2019s imagine a scenario. You\u2019re driving on the highway, and you accidentally merge into another car while trying to switch lanes. It\u2019s just a fender bender, but both cars have some damage that will need to be repaired.<\/p>\n\n\n\n Since you\u2019re at fault, you\u2019ll need to report the accident to your insurance. The other driver will also call their insurance so they can file a claim with your insurance company.<\/p>\n\n\n\n Your insurance company will then pay for the repairs to the other driver\u2019s car. This is what your liability coverage is for.<\/p>\n\n\n\n But what about your car? If you have collision coverage, you can also make a claim with your insurance to get the damages covered. First, though, you\u2019ll need to pay a deductible.<\/p>\n\n\n\n A deductible is a set amount of money you need to pay every time you\u2019re in an accident. An average deductible is usually $500<\/a>, so if your car costs less than that to fix, you probably shouldn\u2019t turn your damages over to insurance.<\/p>\n\n\n\nWhat Is Car Insurance?<\/h2>\n\n\n\n
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How Does Car Insurance Work?<\/h2>\n\n\n\n
How Car Insurance Works If You Are at Fault<\/h3>\n\n\n\n
How Car Insurance Works If You\u2019re Not at Fault<\/h3>\n\n\n\n