The Basics of Auto Insurance

Auto insurance is something that is required by federal and state laws to protect the interest of both the driver of the vehicle and the other drivers on the road. Though each state does require a different level of coverage, each state does require that a licensed driver that is operating a vehicle must have insurance on that vehicle in order to drive it legally.

Insurance coverages do differ according to what type of policy you have and what level of coverage you opt for.  Don Allred Insurance can help you determine what insurance policy is going to be right for you and what policy you need to stay legal.

There are two basic types of insurance, the first is full coverage. This is going to cover the entire cost of replacing the vehicle in the case that it is totaled. It is also going to help cover repair costs and medical costs of those involved in the accident. If you have a loan out on the vehicle most loan agencies are going to require that you have full coverage so that you can continue to pay your loan even if the car is totaled.

The other type of insurance is liability insurance. Liability is going to help cover the cost of medical bills and a portion of the other person’s bills in the case of an accident. Most states require a specific amount of liability in the form of a monetary value around $20,000 for the other driver. This means that in the event of an accident, the bills of the other driver would be covered up to $20,000 at which point their own insurance would take over.

No matter what policy you choose having an agent on your side is going to make the selection process that much easier.