Introduction to Personal Auto Insurance – Ebook (PDF)
Personal automobile insurance is essential for any auto owner. Personal automobile insurance protects an auto owner from the various injuries or damages that may occur as a result of an automobile accident. Most states require drivers to purchase this form of insurance in order to protect themselves and the other drivers on the road.
An introduction to personal auto insurance and policies is provided in this Ebook.
What Is Personal Auto Insurance
Auto insurance is one of the most important insurances that a consumer must think about. It obviously falls under the category of property insurance, and one’s automobile is often the most expensive and necessary piece of property that one owns.
Personal auto insurance provides coverage for only those vehicles that are acquired for private use. Any vehicle that is used for commercial purposes cannot be insured under personal auto insurance.
Why Is Auto Insurance Mandated?
It is estimated that there are between 40,000 and 50,000 deaths each year due to automobile accidents. Then there are over 5 million additional injuries. These two statistics stem from more than 30 million auto accidents each year. Then of course there are the economic losses. This puts auto insurance in the number one position as the largest form of Property and Casualty coverage.
Most states require owners of automobiles to carry a minimum amount of bodily injury and property damage liability insurance. Owners are also required to show proof of financial responsibility when involved in an accident or ticketed. Proof of financial responsibility is now required for license renewal.
Who Does It Cover?
Any injuries sustained in an accident involving the insured vehicle are covered under auto insurance. Coverage is not only provided to the insured, but to any/all his/her family members who operate the vehicle with the owner’s permission, or individuals who were riding in it at the time of the accident.
What Does It Cover?
Personal auto insurance pays for medical expenses and for work lost due to injury. Auto insurance protects the insured’s financial security in case of a lawsuit that results from loss or injuries to other parties, following an accident involving a member of the family, a friend or a relative that had been given permission, by the insured or the insured’s spouse, to drive the car.
