Being involved in a car accident is a traumatic experience. Aside from the physical injury that you have to endure, there are various expenses to be paid.

But why worry; there is a car accident insurance company that will handle it.

Do I need car insurance?

Certainly, you need car insurance.

Driving without car insurance is illegal. But, there is more to this. Having car insurance will protect you financially from any future liability. Car insurance is considered as one of the most expensive aspects of owning a car but it is also the most important.

Buying a car insurance policy is like having a contract between you and your insurance company. You promise to pay money and they promise to pay car related expenses within the period of the policy.

What are the types of car insurance policies?

There are many types of car insurance coverage available. Some are required while others are optional. Knowing the different kinds of coverage is the first thing to do so that you will know what can fully protect your interest.

The following are the different types of car insurance coverage:

• Liability Coverage – Most states require this kind of coverage. It pays to bodily injury and property damage caused to others. Bodily injury pays to other people’s injuries including medical expenses, loss of wages and pain and suffering.

• Personal Injury Protection – This is one of the optional coverage. This coverage pays your medical expenses including your passengers at the time of the accident. It differs to liability coverage because it pays no matter whose at fault in the accident.

• Collision – This type pays for the damage to your car in colliding with other vehicle or object. This type of coverage is optional.

What is the extent of liability coverage?

Liability coverage pays only for bodily injury and property damage to others when you are at fault and it only pays to the extent of your dollar limits. Therefore, if your expenses are higher than your limit then you will be financially responsible for it.

However, liability coverage does not protect you from your own loses.

Factors that affects rates

Car insurance policy rates are based on many factors. The premium paid reflects factors such as, age, gender, driving record and many others. However, the common factors that are universally applicable are the following:

• Age - Statistics show that drivers below 30 years old are most likely to be involved in a car accident. Therefore, younger drivers are charged with higher rates.

• Gender – Same as age, statistics show that men drivers are involved in more accidents than the rest of the population. Therefore, they are charged more than anybody is.

• The type of car – The more expensive your car is, the higher its rate. This is because these types of vehicles are more likely to be stolen and to cause much when repaired.

• Your location – Insurance companies also consider your location. Heavily populated areas tend to have higher number of accidents.

• Driving pattern – The more you use your car, the higher the rate because there is more risk of being involved in an accident.

Buying car insurance is expensive. Therefore, it is important to compare the policies in terms of price, coverage, exclusions and the reputation of the insurance company.

However, you must bear some car accident insurance problems that might occur. With the help of a personal injury lawyer, you will be able to resolve these issues.