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Auto Insurance

The New Car Owner’s Guide to Auto Insurance

Getting your first car is exciting. No matter how old you are, becoming a car owner for the first time is a good feeling. But unless you live in Virginia or New Hampshire, you’ll need auto insurance if you plan to drive the car on public roads. Every state, with the exception of the two mentioned, requires all car owners to have auto insurance.

Liability is the Minimum Level of Coverage

You can get buy with a simple auto liability policy. As long as you have liability, then you’re in accordance with the law. Liability covers damages that you cause to others during an accident for which you’re at fault. Most states specify how much liability is needed, but you can get more if you wish.

Above and Beyond Liability

Uninsured/underinsured motorist coverage is a good match for liability. You might get into an accident caused by someone who doesn’t have car insurance. Or the person may have insurance but not enough to cover your damages. Uninsured/underinsured coverage will compensate your and your passengers should you get into an accident caused by someone who is unable to pay for damages.

Personal injury protection pays for your injuries as well, but it doesn’t matter who is at fault. But your insurer will likely put a limit on how much they’ll compensate you per incident.

Coverage for Vehicle Damage

You car can get damaged in an event other than an accident. If you have
comprehensive coverage, this type of accident is covered. It compensate you for events such as a tree falling on your car, your car being stolen, or vandalized. Collision coverage pays for damage as well, but only from a collision that doesn’t occur during an accident with another vehicle.

Coverage Options
There are other options your insurer might offer in addition to those mentioned above. Roadside assistance is offered by many insurers. You’ll get assistance if your car breaks down or you get a flat during your travels. No matter what you choose, make sure to at least have liability coverage. You want to enjoy your new car, so do it legally.