Auto insurance is essential to be both safe and legal when you set out to drive each and every day. While the federal government requires that all drivers have auto insurance there are specific levels of coverage that are needed in each state. The national average is $10,000 in liability coverage for all drivers but your area may require more to allow you to remain legal when driving.
There are two basic types of auto insurance, full coverage, and liability only insurance. Full coverage auto insurance is often required by lenders if you owe money on your vehicle in order to help insure that they are able to recover their investment if there is an accident. A good example of this is if a vehicle is totaled in an accident. If you have only liability insurance you are not going to get a check to help pay for a new car. If you have full coverage insurance you will be given a check to help cover the cost of a new car and you and the lender that holds you loan are both benefitted.
With liability insurance you are covered for the amount of your coverage to help with the medical bills of you and the driver that is in the accident with you. Liability coverage is the only coverage that is required by law as it helps to cover the medical bills of those that are in the accident with you and will keep their own premiums from rising. Full coverage insurance will help to cover the cost of a new vehicle but all that is required is liability auto insurance.
If you are at all unsure about what coverage you need, what policy is going to work for you, or what coverage you need in your state to be safe, speak with your insurance agent. The helpful agents at Gold Service Insurance are waiting to help.
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