Over the years, most states in the U.S. have passed laws that all drivers must have auto insurance in order to legally drive a vehicle. In order to register or re-register a vehicle, the driver must provide proof of insurance. Drivers who are caught driving without insurance can be cited, and would be required to pay a fine. When a driver is shopping around for Auto Insurance South in Austin Texas, they should know what types of insurance are available.
Comprehensive insurance is the most expensive, because if provides the most coverage. If the covered driver causes an accident, their insurance would cover their vehicle and passengers, as well as the other driver’s vehicle and passengers. This would prevent the covered driver from paying the costly repair bill for their vehicle. If a driver is still making payments on their vehicle, most lenders require that they have this type of insurance coverage. This is so that if the car is totaled, the lender would still be repaid for the outstanding balance on the loan.
Liability insurance is the minimum amount of insurance required by state law. If a driver causes an accident, the other driver would be covered for the damages, however, the covered driver would not be. They would need to pay for their vehicle repairs out of their own pocket. This is the least expensive type of insurance.
Unfortunately, not everyone abides by the law. If a driver were to let their insurance policy lapse and they hit another driver, that driver’s vehicle would be covered under their uninsured motorist policy if they have it. This insurance also helps if a driver is the victim of a hit and run. Since there is no driver present after this type of accident, the uninsured motorist coverage would cover the repairs to the vehicle.
If a driver has questions regarding Auto Insurance South in Austin TX, they should contact an insurance company who can help them determine which type of insurance would be best for their individual needs. For more information, contact Patrick Court at State Farm.