Car Insurance 101: 10 Things You Need to Know


Car insurance is a type of insurance coverage that car owners buy to protect themselves in case of bodily injury due to a vehicle-related accident and repair or car replacement. Insurance also covers the medical bills of others as well as property damage. It is necessary because the insurer covers the rest of the bills except for the deductible if an accident happens. 

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If you want to subscribe to auto insurance, there are 10 things you need to know about car Insurance.

1. How Auto Insurance Works

Auto insurance works almost the same as other insurance policies, including homeowners insurance and medical insurance. The first thing you do is to purchase an auto insurance policy and determine the premiums you want. Most insurance companies require auto insurance coverages to last for six months, after which you must renew.

However, some insurers offer longer or shorter policies. You are then required to pay premiums, of which you can choose to pay the full amount upfront or monthly. All you need to do is agree with your insurer. If you want to enjoy some discount, pay the total amount upfront.

If later you are involved in an accident, you’ll have to submit a claim to your insurer, but before they honor the policy, you must pay the deductible, and they will pay the remaining amount.

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