Now that you're about to buy your first car, you'll need to start thinking about auto insurance. Unless you reside in a state that allows you to post a cash bond, you're legally obligated to maintain insurance coverage on your car at all times. Unfortunately, purchasing auto insurance can be confusing, especially if you've never done it before. There are so many things to consider when choosing an insurance policy for your car, including the types of coverage to include. When you sign up, you're going to hear four different terms regarding your protection and coverage. Those terms are liability, collision, comprehensive, and extras. Each of those categories will provide you a different layer of protection. It's up to you to choose the right package for your particular needs. To help you make the right decisions regarding your insurance policy, here's what you need to know about each of those terms.
When it comes to auto insurance, liability is the basic level of coverage you can have. It's the type of coverage that states require you to have before you can operate a car on public roads. This type of coverage protects other drivers when you're responsible for an accident. It will take care of the damage to the other driver's vehicles. Liability coverage will not protect your car, at all.
If you're involved in either a single-car accident – you back up into a brick wall – or a multiple car accident where your car is damaged, collision coverage will protect your vehicle. It will take care of the damages that your car sustained in the accident.
When you drive a car, you can encounter non-accident situations that damage your car. For instance, hail storms can leave your car covered with tiny dents, or a rock may fly up and crack your windshield. Comprehensive coverage will take care of those types of damages for you. Comprehensive will also cover damages such as dents caused by car doors in parking lots.
While you're choosing coverage for your new car, you'll also need to think about the extras. The additional protection that insurance companies offer their customers. Things like roadside assistance, and rental car coverage, are extras that you may want to add to your policy. Roadside assistance, and rental car coverage are particularly beneficial to have if you're ever in a car accident. These protections will get your car towed to a save place, and provide you with a rental car while you wait for repairs.
Before you purchase insurance for your new car, make sure you're getting the coverage you need. For questions and concerns, talk to an insurance agent near you, such as LA Insurance.