How to Decide When to Get Auto Insurance? # Expert’s Advice

Auto insurance can be tough, we make it easier for you. With over a dozen auto insurance companies to choose from, each offering so many types of coverage, along with a long list of terms and conditions, it can be exhausting to make the right decision. But when it comes to auto insurance policies, you need to make the right decision to avoid falling into a big pile of financial and legal trouble. 

This article will teach you all about getting auto insurance. How do you know when to get which auto insurance policy, and how to choose the best one? More importantly, how to decide the auto insurance policies that you’ll need and the ones you won’t. Let’s begin the article. 

Liability Coverage

You have to own a liability insurance policy with the state-mandated minimum coverage limit if you live in any of the 48 states (except New Hampshire and Virginia). Keep in mind that driving a car without liability coverage with the state-mandated minimum coverage is a felony and you could face jail time if you are caught. 

Liability coverage is so important that car dealerships won’t let you take the car without proper liability coverage. This auto insurance policy cannot be claimed by the policyholder. So if you have liability coverage, the other driver can claim your insurance policy (if the accident was your fault). 

There’s no process of decision-making when it comes to liability insurance coverage. You have to get one to drive your car legally. Liability insurance policies can be expensive, especially if you get them from the dealership which takes a large commission from the insurance company to sell you the liability coverage. 

If you want to get great liability coverage at an affordable price, it is better that you do your research online, compare different policies and their prices, then make the decision. Remember, cheap is not always the best option to consider, but great coverage at a reasonable price is the best way to go. Looking for auto insurance quotes does not affect insurance rates, so you can keep looking for the best policies online without worrying. 

Collision Coverage

Even a minor dent costs hundreds of dollars for repairs and fixing. This is why getting a collision coverage policy is so important. Collision policy covers the cost of any accidental damage to your car, from minor scratches, and dents, to major damages. Some collision coverage will also pay for the damages to your car due to potholes. 

Collision coverage is great, but this greatness comes at a cost. It is one of the most expensive auto insurance policies you can get. But the great thing about this policy is that it’s optional, and there are many great insurance companies offering collision coverage at a great price. But that’s not all about collision coverage. There are some ways you can save some money with this coverage. 

You can skip collision coverage if you want if your car is older than 10 years of age. Since collision coverage comes with deductibles, you’ll have to pay some money from your pocket before the insurance company pays the rest. This cost, along with the insurance premium is only worth it if your car is new. 

If your car is old, you are better off without this coverage. In case you get in an accident and your car is damaged, it is better to pay from your pocket rather than claiming an insurance policy, paying the deductible, and then getting your insurance rates hiked up.

Comprehensive Coverage

Comprehensive coverage will cover the cost of repairs for all the damages to your car due to natural calamities or accidents that happen when you are not driving the car. This is why it is also called “parked car” insurance. Comprehensive insurance covers all the damages due to:

  • Fires
  • Earthquakes
  • Hurricane
  • Hailstorms 
  • Theft
  • Riots
  • Damages due to animals
  • Vandalism

Comprehensive coverage is a great way of protecting your car from accidents that you cannot control or prevent. But as with collision insurance, if your car is over 12 years old, then you are better off without getting this insurance policy. 

If you live in an urban environment (where chances of animals damaging your car are very low), and your car is covered in a closed garage, then comprehensive coverage can be skipped. But skip this policy only if you are certain that natural calamities are not a threat to your car.

Personal Injury Protection Plan

Twelve states in the US are called “no-fault” states and it is mandatory to have a personal injury protection plan along with liability coverage to legally drive. Since it is mandatory, if you are a resident of these states, you have to get a personal injury protection policy. But if you don’t live in one of these states, then when should you get it? 

Personal injury protection is a necessary auto insurance policy as it covers the cost of medical treatments for injuries sustained in a car accident, no matter whose fault the accident was. So you stay financially secured even though the accident was your fault. 

Uninsured/Underinsured Motorist Coverage

Even though it is illegal to drive a car without a proper liability insurance policy, many people are driving without insurance, putting the lives of other people in danger. What would happen if you get involved in an accident with such people? Who’s gonna pay for the medical treatments and car repairs? 

Claiming your insurance policy is an option, and suing the driver at fault is what you should do, but at the moment, it is better to be financially prepared. Uninsured motorist coverage will cover the cost of medical treatments or car repair if the driver who is at fault lacks a liability coverage policy or has one but the coverage limit is not adequate, UM/UIM can be claimed. 

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