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What is auto insurance? Auto insurance is the guarantee that you money are safe. Car insurance is mandatory in throughout the US. A few states allow car owners not to buy car insurance but in this case the owners have to provide the documents that confirm their ability to pay for any possible damages connected with the car.

The better and the easiest way is to buy auto insurance.

Auto insurance companies offer various car insurance policies.

The government usually requires the minimum of possible coverage but the driver may prefer to buy more car insurance to protect oneself against bankruptcy and great money losses in case of severe accidents.

In most state a liability auto insurance policy is considered to be basic. It usually includes bodily injury and property damage. Bodily injury usually provides coverage for the medical treatment (doctors, medication, rehabilitation, lost income). Two figures are usually mentioned in connection with the bodily injury auto insurance policy. Let’s take 60/110. 60 stands for $60,000 and means that $60,000 is the maximum sum that will be paid to one person. 110 means that $110,000 is a maximum payout that will be maid to all the people injured in the accident.

Property damage is the second part of the liability auto insurance policy required by the state. It covers damages to other people’s cars, personal property in damaged cars, damages to belongings of the pedestrians, damage to houses, fences, etc. The involved parties usually negotiate about the sum that the driver to blame has to pay to the victims of the accidents.

This sum is usually lower than that of the bodily injury auto insurance policy. 60/110/30 will mean that 60 and 110 refer to the bodily injury coverage (see above) and $30,000 will be the maximum amount for each accident.

Sometime other auto insurance policies are included in the compulsory auto insurance plan. These are:

Uninsured motorist (uninsured motorist coverage is useful when the driver who is at fault for the accident is uninsured. In that case uninsured motorist auto insurance policy will cover your expanses on medical treatment. Uninsured motorist policy also covers the damage if the driver to blame runs away from the scene and can’t be found)

Underinsured motorist (saves your money in case the responsible drive is underinsured)