Auto insurance policy is mandatory and it gives you financial protection while an accident. How does auto insurance work? What are the coverage types and is the coverage sufficient?

Know the Basics of Auto Insurance

It is the contract between an insurance company and you that provides you protection against some financial loss such as vehicle theft or accident. As per your policy, the company providing the insurance also pays for your losses. It gives coverage for the following:

• Property: It covers theft or damage to your vehicle

• Liability: The legal responsibility of a person to others including property damage and bodily injury

• Medical: The treatment cost of injuries, rehabilitation, funeral expenses, and loss of wages

The amount of coverage should suit your budget and needs. The policies are issued for the time frame of one year or six months and they are renewable. While the renewal time of policy, a notice is sent by the company to the customers.

What Auto Insurance covers?

The Auto Insurance Modesto provides coverage to you and your family members, whether you were driving your vehicle or driving someone else’s vehicle in case of an accident.The policy will also cover a person driving your vehicle with your permission, even if he or she is not included in the policy.

The auto insurance Modesto will cover all the personal driving when you are driving to work, on a trip or even if you are running your errands. However, in case you use a vehicle for commercial purposes, the policy will not cover you.The coverage will not be provided in case you are using the vehicle for providing transportation through services like Lyft and Uber. Some of the auto insurance companies have now started to provide cover for vehicles that provide transportation services at an additional cost.

Is Auto Insurance Mandatory?

The requirements of auto insurance changes with the state. The lender of your car has some of their own requirements while you finance a car. Most states require the car owners to include in the insurance are:

• Liability of body injury: It covers the costs of treatment of injuries or related to death, that you or your driver caused when driving your car.

• Liability of property damage: It reimburses the damage that the person driving the car and causes to other property and vehicles, like a building, a fence, or a utility pole.

• Protection of personal injury and medical payments: It gives reimbursement for injuries and medical expenses to all the passengers in your car. Also, covers the related expenses and lost wages.

Auto policy coverage types

The basic policy of Auto Insurance Modesto is legally mandatory and covers the causes of your car damage, but it cannot cover damage to your vehicle. You have to consider the optional coverage if you want to cover the damage to your vehicle.

• Collision: When your car is damaged, the coverage will reimburse you, in case you collided with other objects or another vehicle like a guardrail or a tree. The collision coverage does not reimburse you for wear and tear and mechanical failure. It can cover the damage to your car from rolling or potholes.

• Comprehensive: It provides coverage when damage to the vehicle is caused by an incident or theft, like vandalism, flood, hail, fire, falling trees or rocks, and other hazards.

Auto Insurance Modesto provides protection to you and your family and also reimburses you in case of a collision or occurrence of some incident such as flood, fire, or other hazards, like falling trees or rocks.