Do Not Be Confused By Auto Insurance
If you have purchased your first car, you are now realizing that you will also need automobile insurance. This can be a confusing plethora of information if you have never had to deal with it before. Do not be intimidated because this article provides the most important details you will need to guide you as you search for just the right auto insurance for you.
The amount of insurance coverage you need will depend on your particular situation. If you purchased a brand new car off the lot, it is likely that you also need to finance it. The finance company will require that you carry enough insurance to cover the full cost of the loan if you should be involved in an accident that “totals” your car.
A deductible is an amount you will need to pay up front to cover the cost of repairs to your car in the case of an accident. The deductible amount is typically attached to the collision and comprehensive coverage of your insurance policy. For example, if the cost of repairing your car is $2,000, you will need to pay whatever deductible amount is on your policy before the insurance company will pay for the balance.
Most auto accidents are in the category of a fender bender, so the first thing that will happen is the police will arrive to write a report of the accident. Make sure to get the name, address, phone number and insurance company of the other party. If the accident is very serious, anyone who is injured will be transported by ambulance to a hospital. You will need to deal with the details of the accident once any health risks have been addressed.
Even though it is illegal to drive in most states without at least liability insurance, there are some drivers who do not have any insurance. If you should be involved in an accident with a driver who is uninsured, they do not have insurance to cover the cost of repairing your car or paying your medical bills. The police report will decide who is at fault for the accident, and many times both drivers are assigned 50 percent of the fault.
When you are the only driver of your car, your driving record is the only one that needs to be taken into account. If you want to allow others to drive your car, you will need to add them to your policy. At the point the insurance company will also assess their driving record, and if it is not as good as yours, your insurance rate will go up.
If you plan to use your vehicle to tow an RV, a boat or some other type of trailer, you will need additional coverage for that. When you are towing anything your risk for an accident is higher, and you stand to lose more in property value if an accident should occur.
These are the most important details you need to consider when shopping for auto insurance, but you may need to do more research to address your particular situation. Use this article as a guide to get started in finding the best auto insurance for you.