Auto Insurance

Auto insurance is a type of insurance coverage designed to protect drivers and their vehicles from financial losses and other risks that can arise from accidents or other incidents on the road. This type of insurance typically provides coverage for a range of potential risks, including damage to the vehicle, liability for injuries to others, and medical expenses.

One of the most common types of auto insurance coverage is liability insurance, which is required by law in most states. This type of insurance provides coverage for the costs associated with injuries or damages that you may cause to others while driving your vehicle. This can include coverage for medical expenses, property damage, and legal fees.

In addition to liability insurance, many drivers choose to purchase collision and comprehensive insurance coverage. Collision insurance provides coverage for damage to your own vehicle in the event of an accident, while comprehensive insurance provides coverage for non-collision incidents such as theft, vandalism, or natural disasters.

Other types of auto insurance coverage can include personal injury protection, which can help cover medical expenses and lost wages if you or your passengers are injured in an accident, and uninsured/underinsured motorist coverage, which can provide protection if you are involved in an accident with a driver who does not have sufficient insurance coverage.

Overall, auto insurance is an important tool for drivers to protect themselves financially in the event of an accident or other incident on the road. The specific types and amounts of coverage that are required or recommended may vary depending on the state and individual circumstances, so it’s important that we carefully review your options and choose the coverage that best meets your needs.

Understanding Auto Insurance

Auto insurance premiums vary depending on age, gender, years of driving experience, accident and moving violation history, and other factors. While not all states require car insurance, most do mandate a minimum amount of auto insurance. That minimum varies by state, but many people purchase additional insurance to protect themselves further. Additionally, if you’re financing a car, the lender may stipulate that you carry certain types of car insurance.

Who Does Auto Insurance Coverage Protect?

An auto insurance policy will cover you and other family members on the policy, whether driving your car or someone else’s car (with their permission). Your policy also provides coverage to someone who is not on your policy and is driving your car with your consent.

Personal auto insurance only covers personal driving. It will not provide coverage if you use your car for commercial purposes—such as making deliveries. Neither will it provide coverage if you use your car to work for ride-sharing services such as Uber or Lyft. Ask us about our supplemental insurance products that extend coverage for vehicle owners that provide ride-sharing services.

The Bottom Line

While other types of insurance such as health and homeowner’s may seem more important, if you own an automobile, regardless of whether your state requires auto insurance, having an insurance policy can save you a lot of money and aggravation in the long run.

When working with Hometown Insurance Agency, you will have a personal, professional agent who works and lives in your community. We will take the time to get to know you and how we can protect your financial needs. We want to make sure that you and your family are protected when you need it the most!