An Independent Worker’s Quick Guide to Auto Insurance


Before you buy an auto insurance policy, you should research two things: your state’s laws and prices. Some states are no-fault states, which means no matter whose fault the accident, your insurance pays. If you have no-fault insurance, you want to make sure that you are not under-insured. At the same time, you don’t want to be over-insured, either.

Auto Insurance: What it Usually Covers

Your auto insurance policy pays out when you are involved in an accident. In most states, the person who is at fault is responsible for the victim’s medical and other expenses. In no-fault states, your auto insurance pays for your injuries, regardless of who is at fault. A policy normally covers property, liability and medical.

The property portion of the policy covers any damage to your vehicle. It will also cover the theft of your vehicle. The liability portion covers bodily injury or property damage to others. The medical portion of your insurance policy covers any medical expenses. In some cases, funeral expenses and lost wages can be covered as well.

When considering auto insurance, there are several types of damages that need to be covered. After an accident, you could be on the hook for vehicle repairs or replacement of a vehicle. You could also be responsible for lost wages, medical expenses, or even physical or psychological therapy.

Why You Need Auto Insurance

Even if you only drive occasionally, you need auto insurance. First, it is mandated by law. Second, an accident could happen at any time. If you don’t have auto insurance and you cause an accident, the victim could sue you for everything you have. You could lose your house, your savings, your reputation and anything else of value.

Even if the accident is not your fault, your insurance could save you money if the other insurance company or the courts determine that you were partially at fault. And, if the at-fault person’s insurance doesn’t pay enough for your injuries, you could collect some of those costs from your own insurance company, should your policy allow it.

How Auto Insurance Changes

Auto insurance changes over the years, so you should check prices at least every couple of years. Prices could go up because of changes in costs and for other reasons. If you keep your vehicle, prices could go down because your vehicle depreciates over time. Shopping for the best deals and coverage helps you save money over time. Even if you get a loyalty discount from your current insurance company, another company could be less expensive.

To find the best rates for insurance, use two or three insurance search engines, such as Jobble Auto and, to find the best prices.

About the Author: Cheryl Bowman has been writing on various topics since 2007. She writes on many topics, including pets and food. Her specialties are legal and automotive as she worked in both industries. Cheryl’s legal specialties are bankruptcy and family law. She also writes about criminal law and civil cases such as personal injury and real estate. You can find Cheryl on Writer Access.

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