Insurance is a system whereby the insured pays money, usually monthly, to the insurer. In return, the insurer promises to cover certain expenses should an event occur. A common example of insurance is where the insured has their car insured and is then involved in an accident. The insurer would then pay to replace or repair the car.

Car insurance is one of the most common types of insurance in the United States. This is because all states, with the exceptions of Virginia and Mississippi, require drivers to have at least some kind of car insurance. There are several different types of car insurance, including liability coverage, collision coverage, and comprehensive coverage.

Liability coverage is perhaps the most common type of car insurance. Liability coverage protects the insured should they be responsible for inflicting bodily injury or property damage to another. For example, if you crashed your car into someone’s mailbox, then your liability coverage would pay for the cost of repairing or replacing the mailbox.

Collision coverage will cover your vehicle against any collision damage subject to a deductible. Comprehensive coverage covers a vehicle against other types of incidents, like fires, thefts, vandalism, weather, etc. If a person has liability coverage, plus collision and comprehensive coverage, then they are said to be fully insured.

Even if your state does not require insurance, it may still be a good idea to get it. Statistics show that the average driver in the United States will make an insurance claim once every 17.9 years. Young drivers, 16 to 19 year olds, are the most likely to need car insurance. However, car insurance is not a right, and a car insurance company can cancel, or refuse to renew a policy at any time, so people should not abuse their car insurance.

Thankfully, getting low cost car insurance is easy. There are many websites that will offer free auto insurance quotes online. You can even compare insurance quotes on certain sites, so you are guaranteed to get the best auto insurance rate. The five best states for low cost car insurance are Massachusetts, North Carolina, Hawaii, Alaska, and Oregon. Also, remember that car insurance purchased for business purposes is tax deductible in the United States.

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