In case you didn’t know, car insurance is generally required by just about every state and country. There can be a lot to buying car insurance, so it helps if you understand what it is, who needs it, and why you can’t go without it.
Explaining Car Insurance
Car insurance is designed to protect you if you have an accident or if your car gets damaged. In a terrible accident, insurance covers medical bills related to the accident. It may also cover lost income if your policy includes it, but you’ll have to compare car insurance policies to know for sure.
Typical things that are part of car insurance also include what you can expect to pay when your vehicle needs some work done due to a crash or fender bender. The amount you pay is called the deductible, and it can raise or lower your monthly fees depending on how high it is. Coverage also usually includes taking care of your car if it is vandalized or stolen.
Everyone Needs Car Insurance
Every person that is of legal age to drive needs to have car insurance. You have no idea when you’ll be faced with an accident or someone who decides to steal your car. The last thing you want is to have to deal with the aftermath and not have any insurance.
Your age, experience, and driving record all impact your premiums, also known as your monthly fees. Younger individuals tend to pay higher premiums because they are statistically more likely to have accidents. As you get older, gain experience, and keep a good driving record without any tickets or driving violations, your premiums will go down.
Select Your Insurance Coverage
You have different types of coverage available. You also have several various add-ons that you can choose with just about every company to tailor your insurance to your needs. The deductible also impacts your coverage premiums. A lower deductible means a higher premium, while a higher deductible means a lower premium.
Each state or country has its laws about what is required. For example, in the US, just about every state requires at least liability insurance. Liability insurance pays for damage done to someone else’s car if you’re in an accident. Be careful about going this route because if you have an amount that is too low and you end up in a bad accident that totals someone else’s car, and it’s your fault, you will be saddled with bills that can make you cry.
Another option in insurance coverage is supplementary medical coverage. You would need to decide if you need it, but it’s a good idea to have it if you need to cover medical expenses after an accident. Your policy information will let you know if it also includes reimbursement for any lost wages resulting from a major crash.
Uninsured and Comprehensive Coverage
When it comes to insurance coverage, you always want to get uninsured or underinsured motorist coverage. Even though car insurance is required, you would be amazed at how many people don’t carry a current insurance policy. If you have an accident and the other person is not insured or doesn’t have the right coverage, this coverage can protect you. Don’t skip it if you can help it.
The same goes for comprehensive coverage. If you can afford it, you should almost always have comprehensive insurance. The only thing to give you pause is if your car is really old. Comprehensive coverage covers everything that could possibly happen to your vehicle. Older vehicles don’t always need this type of coverage. If your car is worth less than the average payout you get quoted from your insurance company, skip it and go with different options.
The Bottom Line on Buying Car Insurance
As you can see, there is quite a bit that goes into deciding what car insurance is right for you. After you get a few different quotes online, ask the companies if you can read their policies so you can compare coverage options. Do not skip out on car insurance even if it seems pricey. While it may seem like a high expense, not having insurance could be much worse if you get into an accident. Select your coverage according to what you need, and only get comprehensive coverage if you absolutely need it.