Your First Car: How to Find the Right Auto Insurance Policy
By Richard Farrell
Special to USInsurance.com
Congratulations on purchasing your first car but before you can cruise; you will need to make sure that you have proper insurance. Moreover, 47 states have passed laws that require you to do this. Auto insurance companies often provide a bewildering combination of deals, and you need to understand these before you can make the choice that is best for you, and meets the legal requirements of the state in which you are resident too. When you analyze these carefully, you will find that they all revolve around the following themes, and that the cost to you is a reflection of the extent of the cover.
Liability Coverage – This covers you for material damage and bodily harm that you may accidentally cause to other people (should you get in an accident). Injury cover includes medical expenses, pain and suffering and loss of income. Property damage includes damages to property and other vehicles.
Collision Damage Coverage – This underwrites you in respect of damage caused to your own car, whether you collided with somebody else’s auto, or an object like a garden wall or a stone in the road.
Comprehensive Insurance – This insures you against other damage that could affect your car, such as fire, wind, hail, vandalism or theft. This type of loss occurs quite frequently, so make sure that you find a comprehensive insurance coverage that is suitable to your needs and the needs of your car.
Medical Coverage – This important coverage will pay for your medical expenses; regardless of whether you caused the accident or not. Some medical aids cover illness only; however, this coverage is there to plug this gap. It overlaps with the personal insurance coverage that is mandatory in some states, and you may not need to take out both.
Uninsured and Underinsured Motorist Coverage – If you own a motorcycle, you will also need coverage. If the third party who caused the accident did not have adequate insurance at the time, then this will plug the gap left by your insurance excess.
Car Rental Reimbursement – If you need your car every day, perhaps to get to work or visit clients, then you should secure this cover too against high auto rental rates.
After you have absorbed the bad news about high auto insurance costs, use these two tips to manage it down as far as possible.
Some car models are popular with car thieves. Others are statistically more likely to be involved in accidents. Avoid buying one of these and you could pay less and perhaps have fewer hassles in the future too.
Insurance companies offer discounted rates to clients that they consider are less likely to claim against their policies. While as a first-car owner you are unlikely to be able to provide an accident-free driving record, a character reference may be worth a try.
An accident will definitely increase your insurance premium payments, and you may have to pay an excess amount in connection with your claim. This means that you must always drive carefully, stay off bad dirt roads and never park in dark alleyways at night.
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