Auto Insurance for First-Time Car Buyers
Buying your first car is exciting, but it is not all fun and games. You must have auto insurance to legally drive a motor vehicle on the road. If you are caught driving without auto insurance, you could find yourself dealing with fines and license restrictions. Also, having coverage is good because an accident, natural disaster, or act of vandalism could ruin your car or cause someone to get injured.
Automobile Insurance Explained
Insurance for automobiles helps you deal with the cost of property damage to other vehicles. It also helps with medical expenses for people hurt in an accident that you cause. A policy will cover damage that you cause, but you can also have a policy that includes damage you receive.
A general policy will cover health and property replacement repair expenses for an accident that you cause. You need separate coverage for things such as vandalism and theft. The medical expenses of a passenger in your vehicle will be covered up to policy limits. But the extent of coverage depends on the type of insurance you have.
Types of Auto Insurance
Liability covers property damage and medical expenses following an accident you cause. All states require proof that a driver has liability coverage. This is the least amount of coverage you can have. Collision is for repairs to your car if you damage to your vehicle. Comprehensive is for vandalism, theft, and more concerning your vehicle.
You might want to consider uninsured motorist or underinsured motorist coverage. This helps in cause you are in an accident with a driver who is not covered by insurance or adequate insurance.
Filing a Claim
You will file a claim following an accident. Get insurance and contact information from others involved. You will also likely need a police report. An insurance adjuster will determine how to proceed after you file a claim.
Benefits of Auto Insurance
The main benefit of this coverage is you can legally drive a vehicle on the road. It will also help with expenses when you need it most.