Information on Car Accident Insurance

Car insurance is mandatory in most states in order to protect the other driver. You can choose between the state minimum of liability insurance or full coverage insurance. If you purchase liability insurance it only covers the financial obligations of the other party, if you purchase full coverage insurance it covers your damages as well no matter whose fault the accident is.

Liability or Full Coverage

There are two main types of car insurance: liability and full coverage insurance. Liability is what is required by most states and the price of the policy varies depending on many factors such as your age, marital status and driving record, as well as the amount of the deductible. This type of insurance covers the damage to the other vehicle if the accident was determined to be your fault. Full coverage insurance will cost more; however, it covers damage to your car no matter whose fault the accident is.

Determining Fault

You need to determine which party is at fault in the accident in order to know which insurance company you need to file a claim with. If the accident was your fault, you should contact your insurance company and let them know. If your policy overs damage to your vehicle, they will open up a claim for you. If the accident was the other drivers fault, you need to file a claim with their insurance company to recover your losses.

Amount of Deductible

The amount of a deductible that you choose affects the rates of your car insurance premiums. The lower the amount of your deductible, the higher your auto insurance premiums are. Be sure that you choose a deductible that is low enough that you can reasonably afford to pay it in the case of a car accident. This amount must be paid upfront by you before the insurance company provides you with the difference from the total amount of financial recovery.