The Different Types of Auto Insurance
The Different Types of Auto InsuranceCar insurance is supposed to protect you against financial losses in the event of an accident. An auto insurance policy is an agreement between an insurance service provider and a policyholder. Your insurer agrees to pay for your losses as stated in your policy and you agree to pay a monthly premium.
There are various types of auto insurance policies including:
- Liability Insurance
- Collision Insurance
- Comprehensive Insurance
Liability Coverage
Liability coverage is a type of car insurance that is mandatory in most states. If you are responsible for causing an accident, liability coverage helps to pay for the other party’s bodily injuries and property damages. Drivers in Scottsdale are required to carry bodily injury liability coverage and property damage liability.
Collision Coverage
Collision coverage is an auto insurance which helps to pay for repair or replacement of your car after colliding with another vehicle or object. This type of insurance is usually required by a lender if you are financing or leasing your car.
Comprehensive Insurance
This type of insurance policy helps pay to replace or repair your car if it is stolen or damaged in an event that is not a collision. If you are financing or leasing your car, your lender requires you to be protected by comprehensive insurance. It is an optional coverage if you own your car outright.
Why You Need Auto Insurance
State Law Requires It
In Arizona, before registering your vehicle and obtaining Arizona license plates, you are required to show proof of Arizona Automobile Insurance. Note that if the car is over five years old, it may be necessary to go through emissions testing prior to registration. You need auto insurance for several reasons including:
To Replace Your Car
An insurance coverage such as comprehensive insurance will pay to replace your vehicle if it is stolen.
To Pay for Damages
Your car insurance policy helps pay for damages to your vehicle after an accident. It may also pay for the other party’s damaged vehicle.
We have an office in Scottsdale, Arizona. Tatum insurance is here to help with all your insurance needs. We will guide you through various auto insurance policies and find the perfect match for you.