Originally posted on July 13, 2019 @ 10:48 pm
If you plan to travel any significant distance in a vehicle throughout your life, it would be helpful to know everything you can about the ins and outs of car insurance. Understanding what is taken into consideration when a quote is offered, what the insurance will truly cover, and the various options you have for coverage is vital to your financial and physical safety while on the road.
Travel safer with the right protections in place, and understand them better with more information. Here are a few crucial things you should know about car insurance before you start planning your next road trip adventure.
Some laws you should know about
The most important thing you should understand about car insurance laws is whether or not it is illegal in your state to go without coverage. Most states require drivers to carry car insurance in order to be legal on the road.
You should also look in to the fault guidelines for an accident in your area. Some states are considered “no fault” states, which could dramatically change the outcome of an accident case.
If you’re purchasing a new car and paying payments on the vehicle, you are legally required to have full coverage insurance until you pay off the car loan.
What is considered when a quote is offered
The price of your auto insurance coverage will vary based on a whole slew of different variables. Take a quick look at just a few variables that will affect the cost of your car insurance.
- Your age – You get a break on pricing when you turn 25.
- The make and model of your vehicle – Sports Cars cost more.
- The state in which you live – The cost of living is matched appropriately with the region.
- The type of coverage you choose – Liability insurance isn’t always the least expensive.
- Your driving history – DUIs and other stains on your driving record will make auto insurance more expensive to procure.
- The company you choose for a quote – Different companies will quote you different prices. Shop around for the best-suited deal.
The various types of insurance coverage
There are more than just a couple of different types of auto insurance. Knowing a bit about each type of coverage will help you to choose the best-suited auto insurance plan for you. Here are just a few types of coverage from which to choose.
- Liability – If you’re at fault in an accident, you’re liable for the damage you caused. Liability insurance will cover the cost of the damage done to others, but not to you or your vehicle.
- Comprehensive coverage – This type of coverage is what you want when a tree falls on your car.
- Personal injury protection – PIP will pay for your (and everyone else in the vehicle’s) medical bills, no matter who is at fault in the accident.