4 Things To Know About Car Insurance For First-Time Vehicle Owners
Posted on: 10 December 2021
If you are ready to buy your first vehicle, you will probably need to purchase your first auto insurance policy. Buying auto insurance is not always a simple task, as there are many things about insurance that first-time vehicle owners might not know. If you want to buy the right coverage types and plan, you might want to know the following four things about car insurance.
1. What Liability-Only Covers
You can choose different coverage types when buying a car insurance plan, and one option is to purchase liability-only insurance. Carrying liability coverage is typically a state requirement for all drivers, but liability does not cover you. It only covers damages that occur to other vehicles if you cause a collision. Having this type of coverage is helpful and important, as it protects you financially, but it might not be the only coverage type you need with your plan.
2. The Difference Between Collision and Comprehensive
Two more types of coverages are collision and comprehensive. You can purchase one or both of these, and they are very different. Comprehensive insurance protects you mainly from non-collision related damages, such as storm damage or vandalism. Collision, on the other hand, offers protection for your car if you collide with another vehicle and have damages to your own car. Both coverage types are helpful and important for many people, but some people can go without these.
3. How a Deductible Works
When you buy collision or comprehensive insurance, you will get to choose the deductible amount. You can choose a low one, such as $250, or you can also choose a higher one, such as $1,000. When choosing your deductible, make sure you know that this is the amount you will pay if you file a claim for comprehensive or collision coverage on your policy. The insurance company covers the rest.
4. The Factors that Affect Your Rates
Finally, you can talk to an insurance agent to learn more about the factors they use to calculate rates. Most insurance agents use many factors to calculate rates, including the person's age, gender, and marital status. They will also consider the person's car, their driving record, and the types of coverages the person wants.
After reading this, you might have more clarity with auto insurance and what you need. If you have additional questions or want to purchase coverage, contact a local car insurance business like Your Local Insurance Services.
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