Auto Insurance

fender bender Purpose of Auto Insurance
Auto insurance provides for the repair or replacement of vehicles damaged by various hazards. While nearly all policies cover motor vehicle accidents, some also cover vandalism or weather damage, or provide for services like towing.

• In general, insurance is the method by which people transfer risk of monetary loss from themselves to an insurance company. You do this by paying a premium


 • You may purchase auto insurance for a variety of reasons. It protects you from great expense should your car be badly damaged in an auto accident. Many people opt for coverage that provides towing service or sends assistance to you if you are stranded with a vehicle that is broken down or out of fuel. Some insurers will cover the cost of a rental car while the insured vehicle is being serviced.

• People as well as inanimate objects are also damaged by auto accidents. Since medical care for serious injuries can be quite expensive, it is a good idea (and in most areas the law) to carry insurance that covers personal

injury. Besides covering merely the driver of the covered vehicle, the passengers, occupants of other involved vehicles and even pedestrians can be compensated.

Working Vehicles

• Vehicles used in the performance of all kinds of work should also be insured. While operation of transportation is a fairly risky activity, vehicles with earth-moving equipment, trailers, cranes, generators and all other manner of devices can present additional hazards to property and people. Owners of such items often feel much more comfortable procuring insurance and are often required to by law.