What is automobile insurance?

Automobile insurance or Car insurance is basically a separate insurance policy against all risks while driving an automobile/vehicle. 

Normally it gives you insurance cover against all the unfortunate events that are bound to owning a car such as a car accident or your car getting stolen. 

Definition of auto insurance

Here is what the official definition of Car insurance is according to Wikipedia:

Vehicle insurance (also known ascar insuranceormotor insurance) is insurance purchased for cars, trucks, motorcycles, and other road vehicles. Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from. The specific terms of vehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance may additionally offer financial protection against theft of the vehicle and possibly damage to the vehicle, sustained from things other than traffic collisions.

How much auto insurance costs?

Honestly, This is a tough question to be answered. The average cost of Auto insurance was $815 in a year in 2012, according to the National Association of Insurance Commissioners(US).

But lets face it, it's an official amount. The average cost can be dependent on lots of things such as where you live, what car you drive and what are the laws regarding auto insurance and most importantly what kind of insurance you choose. 

So nothing and no one can really tell you how much your auto insurance is going to cost you until you really buy it. Still having an estimated value on how much you want to spend on your insurance before going to buy it, will only work easily. 

Is it required to get an auto insurance by law? 

The simplest answer to this question would be - Yes. No matter where you live or which automobile you choose to drive most of the countries around the world have auto insurance as a compulsory.

Now one would surely ask while other more important insurances such as health insurance or life insurance are left on people's choice then what's so important in auto insurance? 

Well, the answer is very complicated and has lots of big law enforced words in it. But the simplest answer for this is that while events related to other insurance such as health insurance only affect that specific person or his family, the events related to automobile insurance (such as car accident) affects the whole society. 

Application for automobile insurance

Applying for automobile insurance is just like any other insurance. You will need the required documents related to you and your car such as registration certificate for the car you are insuring, your driver’s license number and a reference number if you fill out an online application.

After you have collected all your documents you can check in for your nearest vehicle insurance agent or you can get your insurance online. Make sure you do some research about the companies proving insurance in your area and the types of auto insurance before buying one for the best results. 

Conclusion

So folks this was your short guide on the basics of automobile insurance for beginners. If you still have any doubts our hearts and comment section is always open for you so don't hesitate.

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