When you are ready to purchase an automobile, one of the most important things to consider is car insurance. Depending on the kind of car you are going to purchase, your insurance premium could be high or low. For instance, if you purchase a brand new luxury car, you can expect to pay a hefty amount for your car insurance. However, if you are purchasing an older compact car, the premium would be quite a bit less. No matter what kind of car you get, it is important to understand some basic information about auto insurance so that you will know what you are getting and can make a good decision about what you are willing to pay for it.
Nearly every state requires automobile owners to carry liability insurance coverage. This type of insurance protects you from the cost of paying for damage to the other person involved in any kind of accident you may have caused. There are two parts to this coverage, usually broken out as bodily injury liability coverage and property damage liability coverage. The bodily injury coverage helps to pay medical bills for physical injuries sustained by the other party. The property damage portion of the liability insurance covers damage to their vehicle.
Another required type of car insurance in most states is uninsured motorist coverage. In addition to uninsured motorist coverage, which nearly all states require, many also require that you carry underinsured motorist coverage. These two types of coverage protect you if the driver of the other car who caused the accident is not covered or does not have sufficient coverage to pay for the damage you received. This is beneficial because sometimes people have the very minimum amount of coverage, and the limitations may be too low to cover all of the damage costs.
If you get a bank loan in order to pay for the car you plan to purchase, you will be required to have comprehensive insurance. This is an optional insurance coverage if you do not get a bank loan. This is the kind of insurance that covers damage done to your vehicle, whether that means a window get’s broken when your son hits a baseball through it or your windshield needs replacing.
Medical payments insurance is type of car insurance that covers the people inside your car no matter whose fault the accident is. There are some states that require no-fault insurance to make sure that you and your passengers are covered. Some of the things this insurance covers include medical payments, lost wages, and funeral expenses.
If you own a luxury car or if you own a classic car, you may want specialty insurance in addition to some of these more common types of car insurance. The point is that you don’t have to simply accept the coverage an insurance agent wishes you to have. You can ask questions and find out for yourself which types of coverage will work the best for your car and your situation.
One thing that affects the premium is the amount of deductible you agree to. If you agree to a high deductible, your premium is usually lower than if you opt for a low deductible. However, it is important to remember that you will have to pay that deductible each time you make a claim, so if your deductible is quite high, that could be hard to come up with if you get in an accident.
In addition to the different car insurance coverage options and the deductible amount, many insurance companies offer discounts for a variety of things. If you have certain after-market security equipment, take certain drivers education courses, or combine a home and auto policy, your premiums may be lowered because of discounts.
Take the time to learn a little more about car insurance before you buy it.Google+