They Want Me to Buy What? Understanding Car Insurance

Image Source: Wikimedia Commons

Image Source: Wikimedia Commons

The idea of having your own car was probably pretty exciting until you realized you had to pay for maintenance, gas, and car insurance. While a basic gas budget is pretty easy to calculate, trying to understand car insurance policies can be confusing. So what are you actually buying?

Automobile Liability

No matter where you go, you’re going to find that the law requires you purchase¬†automobile liability insurance. The requirement varies depending on the state or country you’re in, but it is mandated by law. If you are found responsible for causing an accident, the liability portion of the policy will pay for the damage you cause to a person or to his property. [Read more…]