"“ukungaphumi kwabantu ukuyovota kusitshengisile ukuthi abaneme. noma sisahamba phambili okhethweni kodwa kucacile ukuthi baningi omasipala okungeke kubekhona iqembu elidle umhlanganiso, ngakho kuzodingeka ukuthi sisebenzisane namanye amaqembu.”" what is auto insurance?auto insurance is a product that is purchased and also that can pay for damages to your vehicle or others' vehicles in the event of a car accident or non--accident related harm. each state has its laws regarding the amount of car insurance that each person should have to be able to drive legally. many different factors influence auto insurance rates, as well. it does not even base on various companies; it is up to the insurance industry to determine what car insurance is and how much each person will pay for auto coverage.what is car insurance? it seems like a very fundamental question. however, there are many different facets and elements to consider about car insurance that it can get complicated very fast if you're not that prepared for what you're getting in. you need to know how rates are more calculated what types of coverage are available, how much coverage you need or can get, and which companies offer the best auto insurance for your needs.what does auto insurance cover?auto insurance is used to protect you the individual or a business or organization from financial loss in regards to a motor vehicle. financial loss can happen due to many reasons, and having auto insurance can cover your losses in a variety of ways.liability for property damagesresponsibility for property damages is coverage against damage you or a person driving your vehicle with your permission does to someone else's property. costs can include the other vehicle, utility poles, fences, buildings, homes, businesses, or almost any type of structure your car comes into touching.collisioncollision coverage usually protects your vehicle from damages resulting from an accident with another vehicle, pothole, car flipping over, etc. collision coverage will pay for repairing your vehicle, or if your vehicle has damaged in the accident, it will reimburse you for the value of the car subtracting deductible and in many cases other costs.auto insurance in the usaauto insurance is a necessity, and this is amply evident from the fact that all states of the usa have made it mandatory to have car insurance on all vehicles. most of the time, this appears to be a bothersome exercise, but why to wait until you get involved in an accident to find out how taking an auto cover takes care of your assets and you. high medical expenses and lawsuit judgments on the rise make it worthwhile to protect yourself and your precious vehicle with car insurance.furthermore, all jurisdictions have made it compulsory to have two auto insurance systems -- the no--fault system, and the tort system. the former type of insurance favor in most states dictates that your insurance carrier shall pay the injury claims no matter who caused the accident in reality. the amount payable is up to a specified limit, and if you are involved in an accident, your carrier is liable to pay for the injury. as against this, the tort system the injured party will have to take care of the medical expenses from their packet and then claim it from the guilty driver's insurance carrier as recompense.with the number of accidents and theft occurring widely in the usa, it is essential for every auto owner to buy such an insurance coverage to secure both the vehicle as well as its owner in times of need.in the usa if you want to have a car on the road you have to have auto insurance. some states even have coverage minimums where you have to have a certain dollar amount of coverage; usually, this is called primary coverage.how to get better auto insurance in the usaauto insurance covers accident to a car. the insurance company pays for the financial loss to the owner in return for a small amount of money paid periodically. the amount paid annually is called premium, and the contract you draw up with the insurance company is known as the insurance policy. the insurance company allows you to hold the contract, and you become the policyholder.car insurance may not come cheap. however, under unforeseen circumstances of loss or damage to your vehicle, compensation will seem like a godsend. periodically shelling out lumps of money for protecting your car or cars owned by your business, may look expensive. there could be a tendency to try and cut corners by availing the minimum motor insurance packages. however, even minor car damage is overly expensive; therefore, a minimum package may not give you the extensive coverage at a time when you need it most.types of auto insurance in the usathe most common types of auto insurance available in the us are the liability insurance, auto collision and comprehensive insurance, medical payments and personal injury protection, and the uninsured motorists and underinsured motorists coverage. most modern companies offer these.liability insurance cover pays for the damage you cause to others and their property. it pays for the legal expenses involved and for the expenditure for the victim going to the court claiming damages, within your liability limits. in a case of an accident, the costs of repairing your car are covered by the collision insurance. the comprehensive insurance covers damages caused by incidents other than car accidents, such as natural calamities, theft, fire, vandalism, and hitting an animal.in a case of the insured person and the co--passenger needing medical treatment for bodily injury due to an accident, this is covered by the medical payments coverage. personal injury protection will cover the medical expenses and the wages lost by you and the co--passenger if injured in the accident.why you need auto insurancethe primary objective of any insurance is to protect the policyholder and his family against the consequences resulting from an unexpected injuries or death and financial burdens in the event of these disasters. it is a contract between the related insurance company and you, where you agree to pay the premium for the losses that the insurance company will need to cover in the event of accidents.the auto insurance covers these three main areas:property coverage -- refers to the damage or the theft of your carliability coverage -- relates to your legal responsibilities to others whom might in the cause of the property damage loss be incapacitatedmedical coverage -- refers to the medical treatments, therapy charges, rehabilitation, lost in the ability to work, or even funeral expenses where there are faculties.the work of auto insurancethe auto insurance also protects you from uninsured drivers or motorists. in this case, the uninsured motorists or drivers have no insurance company to pay you for the damage which had happened, but luckily you still have your insurance company to bear the losses.protect the bank which had provided the car loan to finance your vehicle. because if there are any disaster happening to your vehicle, no one will be able to lend or provide any additional money to you to fix the car other than the auto insurance company. otherwise, you will need to repair the damage made to the car by your own, and this would prevent you from paying for the periodic monthly loan payment on time. the consequences are that the bank will not lend you any more money in the future, with the bad credit standing which you are in at least for some considerable amount of time.