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Protecting Autos

The vehicles and the people in them

You’ll learn more about this kind of insurance when you get your driver’s license. Most states require that drivers buy auto insurance.

What auto insurance helps you pay for

Driving is a risky business, and auto insurance can help you pay for –

  1. Damage that you cause as the driver – whether you hurt other people in an accident or you damage property, like another car or a building. 
  2. Medical treatment you need as a result of the accident.
  3. Damage caused by any non-insured person involved in the accident. Despite the law, some people drive without insurance. So if your car is damaged by a person without insurance, your insurance will help you pay to get your car repaired.
  4. Any kind of damage to your car. Your car can be damaged in several ways: an auto accident, a thief who breaks into your car, or a hail storm. Like homeowners/renters insurance, auto insurance protects your vehicle from things like fire, explosions, vandalism, theft, or storms.

About auto insurance payments

Cars are another one of those expensive items in life. The cost of auto insurance payments, called premiums, depends on how expensive your car is, where you live, your driving record – and with teens, your grade point average. High grades mean lower premiums. Auto insurance payments for teens are high because as inexperienced drivers, teens get into many more accidents than most adults.

When you get your driver’s license, you can be added to your parents’ auto insurance. Your parents may even ask you to help pay for your part of the insurance as well as the gas you use when you drive. When you are no longer a student, you will have to buy your own auto insurance.

Just as with other kinds of insurance, you can buy lots of insurance (that will pay for lots of damage or medical bills) or less insurance. If you buy less insurance and you get into an accident, you will have to use more of your own money to pay for damage or medical bills.

Driving can be dangerous, and the damage can be serious and costly. That’s why many people buy as much insurance as they can afford.