Insuring Your Automobile

If someone travels often, chances are they own a vehicle. Auto insurance provides car owners with financial protection, especially in cases of accidents.
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If you own a car and you’re planning to get it insured, here’s what you need to know:

The Basics of Auto Insurance
Auto insurance protects owners from financial losses in case of accidents or theft. It is a contract where the provider agrees to pay the insured’s losses as stated in the policy.

Typically, auto insurance covers the following:

• Property - for damages on the car or car theft
• Liability - for legal responsibilities (e.g., a lawsuit for bodily injury or property damage)
• Medical - medical expenses for treating injuries, including funeral expenses

Auto Insurance Coverage
Most basic policies provide six types of coverage. Additionally, auto insurance doesn’t only cover the policyholder. The policy can provide coverage for the insured’s dependents as well. 
Here’s what you need to know about what auto insurance covers.

• Bodily Injury Liability
  This type of coverage applies to the injuries that the policyholder causes to someone else. Additionally, dependents under the policy are also given coverage when driving other people’s cars with permission.
• Medical Payments or Personal Injury Protection (PIP)
  This coverage provides the policyholder with financial protection in case they and their passengers get injured. PIP covers medical bills, lost wages, replacement costs, and even funeral costs.
• Property Damage Liability
  This coverage protects the insured from financial losses in cases of damage caused by the insured. Typically, this coverage covers damage to others’ cars. However, it also includes damage to lamp posts, fences, and other structures. 
• Collision
  This coverage pays for damages to the policyholder’s car when a collision happens. A collision can be with another car, an object, or as a result of flipping over.
• Comprehensive
  This coverage reimburses the insured for losses resulting from theft or damages to the policyholder’s car.
• Uninsured and Underinsured Motorist Coverage
  This coverage reimburses the policyholder or their dependents if one of them gets hit by an uninsured or underinsured driver. 

Conclusion
Although laws vary, most U.S. states require basic auto insurance policies. Other than this, getting auto insurance is important because accidents can happen anytime, and insurance gives policyholders financial protection. 

At Old Bay Insurance Agency, Inc., we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (410) 777-5390. Get your free quote today by CLICKING HERE.