You just bought your first car. You’re likely proud of your first car, no matter if it’s a new sports car or an old mini-van. Owning a car is not complete without auto insurance. Although it may seem complicated, it really isn’t.
Law
The law requires that you have auto insurance if you own a vehicle. The amount and type of insurance required varies from one state to the next. However, regardless of the law, insurance is essential because an accident can lead to very expensive business.
Coverage
What does auto insurance cover exactly? There are many things that auto insurance covers, from vehicles to personal property to bodily bodies. There are six types, some mandatory and some optional. Let me explain it.
1. Bodily Injury Liability
You will feel terrible if you cause injury to someone in an auto accident. However, you will also have to pay their medical bills. Bodily injury liability is where you come in. You will likely want to obtain more than the minimum state law requires. If you get sued, you will need to be protected.
2. Personal Injury Insurance
You might get hurt if you are involved in an accident. Personal Injury Insurance is necessary. This covers your medical bills, lost earnings, and sometimes even funeral costs.
3. Property Damage Liability
Even if you don’t injure anyone else, chances are that the damage to the vehicle you hit will be more severe than you thought. Property Damage Liability protects you from damage to other people’s cars or property that you may have caused by your accident. This includes lamp posts, fences and stop signs.
4. Collision Coverage
Collision Coverage is available if your car has been flipped over or crashed into something.
5. Comprehensive Coverage
However, your car might be damaged by something more than hitting another vehicle or object. Fires, falling objects and missiles can all cause damage to your car. If you drive to an action-adventure movie set, Comprehensive basically covers you.
6. Motorist coverage for the uninsured and under-insured
This coverage is for those who don’t want to see the video but are too stupid to have any insurance. You are protected against an uninsured or underinsured motorist who hits your vehicle, doesn’t pay damages, or causes an accident.
These are all the options. There are many options for coverage that you can choose from. Understanding each one is important so that you can decide which coverage you need.
Minimum Requirements
Don’t think you can get by with just as little insurance. You should have at least $100,000 bodily injury coverage per person and $300,000. per accident. Many times, accidents can cost more than what is required by the majority of states.
Selection and Research Tips
There are many auto insurance companies available so make sure you do your research to find the best deal. Also, remember that there are many. Don’t just look at the price. Make sure the company is financially sound and that they deal well with customers.
Avoiding Accidents
Avoiding distractions while driving is one of the best ways you can protect yourself from being in an accident. Recent studies have shown that texting and cellphone use are the leading causes of car accidents. Make use of your common sense and put the phone down before you drive.
