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 Auto insurance if a very important and practical item to have if you or anyone you know is the owner of a vehicle. With auto insurance each participant pays a monthly fee to insure that they will be covered if there is ever an auto accident that they are involved in. As with any other insurance, auto insurance also requires a deductible and may result in increased rates when there is an accident.


In many states it is against the law to drive without auto insurance. This insures that both parties will be covered in the event of an auto accident. Depending on the party at fault, the auto insurance company will usually cover the costs involved in replacing parts or the entire vehicle for both parties. If the individual at fault does not have auto insurance, then he or she may be arrested or even be forced to pay the costs out of their own pocket.


To avoid such astronomical costs it is important that you have auto insurance. Paying for an accident out of pocket can be both devastating as well as burdensome. 

This Financial Services article was written by Anonymous on 12/7/2009