When it comes to car insurance there are several things that you need to take into consideration. The most important one is most states require car insurance and if you are stopped by the police for any reason, they are going to ask to see your proof of insurance. If you don’t have it – you will get a ticket for “no insurance” and it will be a high fine.
Before you buy insurance, you need to look up insurance requirements for the state you live in. This information is normally found under Insurance Department which will have a website. Everything you need to know will be on that state website.
The states that demand you have insurance do not care what insurance company you buy from; just that you have insurance from some company. After you find the minimum requirement for auto insurance by the state, take this information to shop for the lowest price by company. But be aware that lower premiums might get you bad insurance.
If you are driving a brand-new car, the company financing your car will want you to have full coverage insurance. This means having the following:
- Bodily injury liability – if your accident was your fault, bodily Injury liability covers paying for the injuries the other driver might have.
- PIP or personal injury protection – covers any injuries any passengers might have;
- Comprehensive coverage – covers the loss of your car by anything but an accident – two examples would be flood or theft;
- Uninsured and underinsured – covers damages if you get hit by an uninsured motorist
Insurance policy will have deductibles which is the amount you pay. If you have a low deductible your insurance policy will be more expensive than if you have a high deductible. You should carry a deductible that you will have no problem paying if you are in an accident. This might make your insurance premiums slightly higher, but the alternative might mean not being able to pay the deductible and not being able to get your car repaired. You can get your insurance agent to help you with decisionson what amount you should carry for a deductible for your car insurance.
This is just a short tutorial on auto insurance.