An automobile accident can be a traumatic event. Among the many issues an accident raises is paying for the resulting medical costs and property damage. The driver at fault may be liable for the other driver s costs as well as his own. Because of the expensive potential of such liability, automobile insurance is the practical financial safeguard that vehicle owners should have in the event of an accident.
Insurance regulations vary from state to state.
States also set minimum levels of liability insurance coverage. Liability insurance does not cover your medical costs or damage to your vehicle. Collision insurance covers losses you incur in an accident. Comprehensive coverage pays for auto damage caused by theft, fire, or vandalism. Rates and terms for insurance policies vary from company to company, so it pays to shop around.