Automobile insurance is a necessary cost to those who own and drive an automobile to work or for leisure. Even though there are costs the benefits of an automobile insurance policy include protection in the event of an accident, payment for damages to a vehicle and peace of mind knowing a vehicle is completely insured. The benefits of an automobile insurance policy are not always seen until it comes time to file a claim.
An automobile insurance policy comes with many coverages that pay for damages as the result of an accident. One in particular will pay for medical costs resulting from injury. This is known as the bodily injury coverage section of the policy. Bodily injury pays for medical costs when a passenger or driver of another vehicle is injured as well as passengers in a person’s own vehicle. Another benefit of bodily injury coverage is what is called liability coverage. Liability coverage provides protection by paying for any legal costs as the result of getting sued by another driver, their passengers or a person’s own passengers for their injuries.
The most obvious benefit of an automobile insurance policy is the payments that are made as the result of damage done to a vehicle. Payments for damage can come from two different coverages on the policy. There is collision coverage and comprehensive coverage. Collision coverage pays for damage when an accident involves another vehicle. Comprehensive pays for damages as the result of theft or more typically hitting a deer or some other animal on the road. The policy will pay out damages up to the limits that have been set on the policy. This is of course after the deductible for the policy has been paid by the insured.
The best part about having an automobile policy and the benefits it provides is the peace of mind knowing that a policy is in place. Having an automobile insurance policy in force means that their will be payments if an injury occurs and payments for any damage to a person’s vehicle. Even though there is peace of mind there are still costs involved for the policy. On top of that most states require an insurance policy for a vehicle that is driven. They even require a minimum amount of coverage to be carried on a policy. However, the benefits and peace of mind of having an automobile policy outweigh the risk of not having one.
Many times the benefits of an automobile policy are not seen until it is time to file or make a claim on the policy. People that pay their premiums may wonder what they are getting for the money they are spending on their policy. This premium payment is an expense in which there is no immediate benefit seen but is the policy is there when it is needed.