Purchasing a car can be one of the most critical decisions you are making. Before you go ahead with the purchase, you should know that there is more to it than just getting the car home. Using the car to commute from one place to the other requires the presence of a valid auto insurance policy. This is not just a safety measure, but also a legal requirement. The auto insurance policy is something that helps you stay financially safe in case you meet with a mishap. Even the safest driver on the road needs to have this policy so he does not jeopardize his life and the lives of others on the road.
The auto insurance requirements of one state are not same as the requirements of the other states. For example, the requirements for the driver in New York are not the same as the requirements for the drivers in the state of California. Hence, if you are moving from one state to the other, you should know and understand the local requirements for auto insurance and get yourself a new policy if you intend to drive in the new state. Any insurance policy that does not cover the minimum legal auto insurance requirements specified by the state is not considered a valid insurance policy. Driving without valid coverage will earn you a hefty fine if caught by the authorities or you may also have to face jail term.
There are various types of auto insurance coverage that are offered by various companies. The coverage that your friend opts for may not be suitable for you. Before you apply for insurance coverage, it is important that you understand all the types of coverage you can choose from and their benefits and drawbacks. The type of coverage you choose should not only be based on the cost of coverage, but also the type of car you are using and the market value of the car. If the car is very old and does not have a high market value, then you may want to consider opting for the third party coverage which is a basic coverage that costs less. However, if you have a car that is relatively new, then you may want to opt for a comprehensive coverage that offers complete financial protection in case any untoward incident takes place.
If you are buying a car right off the showroom, chances are that you will be given complimentary insurance coverage for a year or two. It is important to renew this coverage at the end of the term so there is no breakage.
