With so many different types of auto insurance available, it can be difficult to know which one is best if you’re a first-time car owner. In the same breath, you know that you do need to get the right type of coverage in order to protect yourself from any potential accidents.
But it’s not just road accidents that you’ll need to safeguard against. There is also the question of mechanical breakdown insurance - a type of coverage that can pay for certain major repairs above and beyond your daily wear and tear.
So how do you know which insurance is best for car ownership if it’s your first car? Find out below:
The Must-Have Car Insurance Option
There are some types of auto insurance coverage that are essential, and might even be required by your state. This is the car insurance option you absolutely cannot skip out on, so you’ll want to research what the guidelines are regarding minimum liability and property damage insurance in your state.
The key thing to know is that you’ll likely need to have some kind of car insurance in place for as long as you legally drive or else you’ll risk being penalized with fines or worse. Imagine what would happen if you were to have an accident without any kind of coverage - you’d be personally liable for the damages and that can get expensive fast.
So what does liability and property damage insurance really do? When it comes to cars, this policy will typically cover bodily injury caused by an accident such as paying for medical expenses. It will also cover the cost of the damage to the other party’s property, in this case, their vehicle. Some insurance carriers will go as far as to cover damage to city property, such as if you were to hit a traffic sign and damage it.
At the very least you will need to have personal liability and property damage insurance for your car, plus any additional requirements set by your state.
Other Types Of Auto Insurance Coverage You Should Know About
It’s not just damaging other people’s vehicles that you need to worry about - your own car has to be protected as well. You might consider buying physical damage coverage so that you don’t have to worry about any surprise expenses if your vehicle gets damaged.
There are a few options available to you here. If you decide to go for comprehensive coverage, you’ll get a policy that will pay out for damage suffered from anything other than an accident. This would include things like glass damage, fire, theft, or other acts of nature.
Collision coverage is another option that comes into play when your car has any kind of collision, whether it’s with a tree, road sign, or other cars.
Your options will also vary by state, insurer, and by your own budget. But be warned: if you’re cutting down on coverage for the sake of saving some cash, you will need to have some rainy day money set aside for any potential expenses that come up as a result.
What Kind Of Cost Can I Expect?
Now remember, we mentioned that the cost for your car insurance will be highly dependent on location and the type of coverage you choose.
At the same time, there are some averages that you can use as a guideline. The National Association of Insurance Commissioners has published data showing that across the country, individuals are paying around $1,134 for car insurance policies that include collision and comprehensive insurance with personal liability cover.
As a new car owner, it’s your responsibility to meet the insurance requirements of your state. Even more than a responsibility, it’s for your own peace of mind. None of us like to think about experiencing things like vehicular accidents, but they happen every day and you don’t want to be caught off guard.
The last thing you would want is to get caught up in an expensive lawsuit based on damages suffered in an accident or to have to personally pay for repairs to the other party’s vehicle and yours at the same time.
Take your time to do your due diligence and find an insurance carrier that is flexible enough to work with your budget but has good enough coverage to protect you fully.
Need assistance to narrow down the list? Richard Dean Insurance can help protect the things that are most important to you - your family, home, car, and most of all, your life.