The Beginner’s Guide to Auto Insurance


Choosing the right auto insurance for the first time can be a confusing process especially since most beginners do not know what coverage they should opt for. By researching and reading up about auto insurance you can reduce the frustration involved in buying new car insurance. The following paragraphs will attempt to simply the process of buying car insurance. 

Cost of Auto Insurance 

There are various factors that will influence the amount you pay to vehicle insurance companies but some of the important factors include your driving record, your age, your car’s value and your car’s condition. Your driving record will help the insurance company understand if you are a safe driver or not and your age will help the insurance company understand if you are more likely to get into an accident or not. As a general rule car owners that buy expensive cars are asked to pay a high premium since replacement parts and repairing costs for expensive cars is more. 

Your car’s condition will help the auto insurance company understand if your car is more or less likely to break down in the middle of the road or cause problems on the road of any kind. Modifications to your car also influence the amount of premium you pay. Unnecessary modifications like modified lights, wheels or modified car bodies will bump up your insurance premium significantly or these modifications may make you ineligible for auto insurance. Necessary modifications on the other hand can get you a discount. Some of the necessary or encouraged modifications include automatic seatbelts, a safe baby seat and theft alarm. Safe cars often get a lower quote than regular cars. 

Local State Auto Insurance Laws 

Certain states have specific vehicle insurance laws and they require all drivers to opt for liabilities like bodily injury liability and property damage liability. By being aware of these laws you will know what liabilities to opt for and what are the helpful optional liabilities. If you are opting for bodily then it is recommended that you opt for $100,000 cover. If you are planning to opt for property damage or vehicle damage liability then it is recommended that you opt for $300,000 cover per collision. These liabilities not only protect you financially during an accident but they also pay for legal fees in case the other party wants to take legal action.

 Comprehensive and Collision Coverage 

Collision coverage pays for any damage to your car when you have got into an accident of any kind and comprehensive coverage pays for vandalism or damage to your car when it has not been in an accident. Comprehensive coverage also pays for stolen cars and damage to the car due to a natural calamity. Comprehensive coverage does not pay for auto accidents and collision coverage only pays for auto accidents.

Undercover Motorist Liability

One of the most useful liabilities is the undercover motorist liability. This cover pays for medical help when a motorist hits you and does not stop and it also pays for medical care when the motorist does not have adequate coverage. This useful liability also pays for other members in the car at the time of the accident and it pays for your medical care if you were hit while you were on foot.