What is car insurance?
Car insurance is a type of insurance that will protect again financial loss. Car insurance will help cover the cost of the policyholder who is in an accident. It can also be used to cover the cost of replacement or repairs.
Car insurance can cover the following things:
Cover the cost of repairs from theft, fire, and disasters. It can also cover the cost of vehicle replacement.
Cover the medical bills if the driver is injured in an accident
Cover lost wages for an injured driver
Cover losses if an underinsured or uninsured motorist is in an accident.
Damage to the vehicle of the property holder.
Cover damage to property that the policyholder is responsible for
Injuries if the policyholder is at fault for the crash
Rental car expenses while the main car is being repaired
Roadside assistance
Most drivers are not required to carry all of these insurance options. They should purchase the best coverage that they can afford to protect them against potential losses.
How much car insurance should I get?
It is not a good idea to select a policy because it has the lowest price. Most people want enough coverage to protect them in case of an accident. They should be prepared to pay a higher monthly premium for this coverage.
The amount of auto insurance a person should have will vary based on their specific situation. Some states have minimum requirements for auto insurance. Some states require that every driver have:
Liability insurance
Insurance for uninsured/ underinsured motorists. This will help covered their losses if the other driver in an accident does not have insurance.
Personal injury protection. This will help cover the lost wages and the medical bills if the driver is in a minor accident.
In the state of California, there are some additional requirements for coverage. Drivers must have:
$15,000 for injury liability coverage per person
$30,000 per accident for injury liability
$5,000 in property damage coverage
In California, a person does not have to have personal injury protection. 15 states will require this coverage. They are considered to be no-fault states. When this is an accident in these states a person needs to use their insurance to cover the damage. This is required even if the other driver was at fault.
In the state of New York accidents are said to be not faulted. A driver will need to carry at least $50,000 in PIP coverage. There are three choices of no-fault states in this country. Drivers can have the option to purchase this coverage or they can get what is called a full tort policy. This will allow them to sure the other driver in an accident even if it was minor with no injuries.
Most people want to get more than the minimum coverage when it comes to car insurance.
If the driver does not have car insurance and they are found to be at fault for an accident they may have personal liability. If someone dies in an accident the party at fault can be sued. People may be seeking millions of dollars in damages. If they only have $15,000 worth of insurance coverage their assets are at risk.
Some people want additional coverage in case their car is stolen or it becomes damaged. Liability insurance will not cover this even if a person has the highest liability coverage. A driver will need to have collision insurance to cover damages or for repairs after a car accident. They should also purchase a comprehensive insurance plan to help cover additional losses.
A good car insurance company will give additional options to drivers when it comes to their coverage. There is a new car replacement policy option. If a person gets in an accident with a new car the insurance company will cover the cost of another car. They will get the current market value for their car. This is something to remember since the value of cars depreciates quickly.
The more insurance that a person has the better protected from a loss they are. They will need to pay higher premiums. A person needs to look for car insurance that covers their needs but is affordable.
What will a comprehensive auto insurance plan cover?
In most places, comprehensive insurance is not required but a driver may want to add this to their policy.
This insurance is referred to as the other than collision insurance. It will cover the car if damaged as a result of a car with another car. It will help cover losses including:
Windshield or other glass damage
Accidents involving animals
Damage from a fire
Vandalism
Theft
Damage from acts of nature
If a person is willing to shop around they can get affordable comprehensive insurance. This can save a lot of money in the long run if something does happen to the car.
What will liability insurance cover?
Liability insurance is required and it can help protect the diver from big losses.
Liability insurance will pay out if the driver hits another vehicle or property. If they injured someone or if someone dies in the accident it will help pay for legal fees and a settlement on the damages. It will only cover the cost up to the limits on this policy.
When looking to save money liability insurance is not the place to make cuts. The policyholder will be responsible for the rest of the money outside this policy limit. Drivers need enough coverage to make sure their assets are protected. They should get quotes from several different insurance companies so they can get the coverage they need at an affordable price. This insurance offers needed protection.
Finding Cheap Auto Insurance
Price is very important when it comes to car insurance. Most drivers are looking to get the best coverage at the lowest price.
There are some tips for finding cheap auto insurance.
1. Get quotes from several auto insurance companies. Prices will vary so the driver should get at least three quotes to compare. It is best to enter the VIN when getting the quotes for faster and more accurate service.
2. Choose an affordable vehicle. Some cars are more expensive to insure than others. A mid-priced car will offer a good ride and lower auto insurance premiums. A car should have an alarm and additional safety features for the best price.
3. Pay annually. Most people want to pay the full price for the car. If they choose monthly payments the price is usually a little higher.
4. Have good credit. Most insurance companies will look are a credit history to determine the price. The credit information should be accurate. If the driver has poor credit they are seen as a risk. Any errors on the credit report should be corrected.
5. Limit Drivers. Insurance companies will charge higher fees if there is a teen driver on the policy. If a person has a bad driving history they will also pay more. A person should not let others use their car as this can raise their rates.
6. Take a Defensive Driving course. This will allow a person to see additional discounts.
7. Buy needed coverage. People will need a liability policy but they may not need roadside assistance if they are already a member of AAA. If the car is older collision coverage is not needed. A higher deductible can mean a lower premium. The driver will also need to pay out of pocket before the insurance company takes over.
8. Bundle Policies. If a driver has their auto and home insurance with the same company they can save a lot of money.
9. Ask for discounts. A person can ask the auto insurance companies about discounts. Young drivers may get a discount if they have good grades.
Is an older car cheaper than insurance?
Most people that want lower auto insurance drive older cars. They are cheaper than insurance because:
The value is lower and it will not cost as much money to replace or repair the car.
Some coverage such as collision may not be needed.
Older cars are at a lower risk to get stolen.
Older cars do not have as many safety features. They may not have some things that will lower the cost of coverage and may be the driver at a bigger risk for being injured.
It is important to shop around for the best price. If a person gets several auto insurance quotes they can often find an affordable policy.
