Depending on the type of coverage you purchase, auto insurnace insures you agains:
■ The cost of repairing the vehicle following an accident.
■ The cost of purchasing a new vehicle if it is stolen or damaged beyond economic repair.
■ Legal liability claims against the driver or owner of the vehicle following the vehicle causing damage or injury to a third party.
Liability insurance covers only the last point, while comprehensive insurance covers all three. Even comprehensive insurance, however, doesn't fully cover the risk associated with buying a new car. Due to the sharp decline in value immediately following purchase, there is generally a period in which the remaining car payments exceed the compensation the insurer will pay for a "totaled" (destroyed, or written-off) vehicle.
Cost
In the United States it is compulsory to purchase auto insurance before driving on public roads. This is to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle. Typically, coverage against loss of or damage to the driver's own vehicle is optional.
The average cost consumers pay for auto insurance is close to $80 a month. The cost of auto insurance coverage can vary enormously from one insurer to the next. Quote Wizard provides users with free auto insurance quotes from multiple companies so they can be sure they're receiving the best deal! Compare rates on your auto insurance. To get your FREE auto insurance quote Click here!