Auto insurance is a necessity if you want to drive. Here's what you need to know.

Why is auto insurance important?

Auto insurance is important because it can help you avoid financial losses that may occur as a result of car accidents. If you are involved in an accident, your auto insurance can help pay for the cost of repairs to your vehicle, as well as any medical expenses that may be incurred as a result of the accident.

How much auto insurance do you need?

The amount of auto insurance you need will depend on a number of factors, including the value of your vehicle, the amount of coverage you want, and the deductible you are willing to pay. You should consult with an insurance agent to determine the amount of coverage you need.

Additionally, it is important to note that if you have a lien on your car and do not own it outright, the lienholder may have their own set of requirements in terms of what type and how much auto insurance you need to carry.

Is auto insurance required by law?

While laws vary from state to state, auto insurance is typically required in order to operate a vehicle on public roads. If you are caught driving without insurance, you may be subject to a fine or other penalties.

What are the different types of auto insurance?

There are six different types of auto insurance:

• Liability insurance. This type of insurance protects you from financial losses that may occur as a result of your involvement in an accident.
• Collision insurance. This type of insurance covers the cost of repairs to your vehicle if it is damaged in an accident.
• Comprehensive insurance. This type of insurance covers the cost of repairs to your vehicle if it is damaged by something other than an accident, such as a fire or theft.
• Medical payments insurance. This type of insurance covers the cost of medical expenses that may be incurred as a result of an accident.
• Personal injury protection. This type of insurance covers the cost of medical expenses and lost wages that may be incurred as a result of an accident.
• Uninsured/underinsured motorist insurance. This type of insurance protects you from financial losses that may occur as a result of an accident involving an uninsured or underinsured driver.

What are auto insurance rates based on?

Auto insurance rates are based on a number of factors, including the type of car you drive, your driving record, your age, where you live, and even your credit score.

You should consult with an insurance agent to determine the rate that is best for you.

Contact an auto insurance agent to learn more.