Car Insurance

Car insurance has been created to protect the policy holder from monetary loss in the event of a car accident. The policy holder, usually the driver or owner of the vehicle, in turn, pays a monthly fee to an insurance company. Factors such as the driver's age, vehicle type, driving history, and location are all key contributors which factor in the price calculated. This article will help you to learn more about the different types of car insurance so that you can choose the right policy for your needs.

Again, the basic function of car insurance is to financially protect the policy holder from costs associated with vehicle damage, bodily harm and property damage of all persons involved in a car accident. There are many choices, all of which carry varying levels of coverage:

• Liability

- This coverage pays for damages sustained to others or their property in the event of an accident. It will also pay court costs. In many states, it's the bare minimum needed to legally operate a car on public roads.

• Collision

- This covers damages to your car in the event that you collide with another vehicle or object.

• Comprehensive

- This covers several types of damage which include theft, fire, vandalism or extreme weather conditions.

• Medical - This covers medical expenses associated with injuries sustained in a car accident.

• PIP (Personal Injury Protection)

- This will pay for medical expenses when injury is sustained during an accident, regardless of whose fault it is.

• Uninsured/Underinsured

- This will pay for any damages sustained to you in the event that the other driver in the accident is uninsured.

Each state mandates varying levels of car insurance coverage. Some of the aforementioned coverage is not mandatory; it simply offers added car insurance protection for those who seek it. For example, some states require PIP insurance, while others only require that a person carries liability car insurance.

There are several states that are considered "no-fault" states. This essentially means that each insurance policy holder involved in a car accident can recover financial losses from their own insurance company, regardless of who's at fault. To see the requirements of your particular state, visit DMVlist.com and simply click on your state.

If you know the requirements of your state, you can begin the process of obtaining car insurance by going to YellowPages.com to find an insurance company in your area and request a quote over the phone or you can simply visit an insurance comparison site such as Insweb.com and receive instant car insurance quotes.