Auto Insurance Primer - Understand the Fine Print

If you are the driver of a car, you had better make sure you understand the auto insurance rules of your locality. Most states in the United States require auto insurance, and if yours is one of them you must be sure to comply. These laws were put into effect to protect the drivers of cars as well as any potential victims of car accidents. Whether there is damage to your car, another car or one of the passengers of a car in the case of an accident, the auto insurance of each of the drivers will cover the costs of any damage caused.

You will need to know the exact coverage that your policy gives you. All policies are different and may give different levels of coverage. Make sure you understand the exact coverage the policy you are buying is giving you. Take time to read the policy, and if you have any questions, ask the agent to explain anything you do not understand.

Besides understanding the exact coverage of your policy, be sure you know what to do if you have to make a claim. If you are in an accident, how should you report it and who should you call? What will your insurance company do for you in case of an accident? These answers are in the policy, so it is important to read and understand it. Many times the insurance company will give you an accident reporting card so you know what information to get and who to call.

For your own safety and that of your family, you should understand your auto insurance policy. In addition, you should keep all of the information regarding your policy handy in your car so that if anything happens, you have all of the information ready and you can make the insurance report and take care of all of the details.