Why do I need car insurance? This is a common question that we receive, especially among our young customers that have this new expense. “But, I’m a good driver.” Yes, we know.
Car Insurance is primarily made up of two parts. The Liability Coverage and the Physical Damage coverage. Physical Damage is the protection if your car is damaged. This enables you to repair or replace your vehicle.
Liability coverage is protection that you have for other people. This will pay for damages to someone or someone else’s property. If you are involved in a car accident and someone has to seek medical attention as a result of this accident, you could be held responsible for the medical bills of this injured person. This is what your Bodily Injury Liability coverage will pay for. If you damage someone else’s property as a result of an accident, you have Property Damage Liability to pay for someone’s damaged car or other property.
The 2nd part to your car insurance is the Physical Damage coverage. This is optional on your car insurance. This will pay for the damages done to your own vehicle.