If you own and drive a car, it will be necessary to buy insurance on that car. It is illegal to drive without at least liability insurance, which protects you from being sued by another party if you are deemed to be at fault for an accident or damage. Use the information in this article as a guide to purchasing the right automobile insurance for yourself.
Most insurers recommend you carry at least $500,000 coverage for each person per occurrence. In addition, you should also have $100,000 per occurrence for property damage, $500,000 per occurrence for uninsured motorist and under insured motorist, as well as comprehensive and collision to cover the actual cost of repairs. There will be a deductible amount for both collision and comprehensive.
Liability is a type of insurance that some people carry when the automobile they are driving is of little value. Many times an insurance carrier will advise a client that it is no longer reasonable to carry full coverage on their automobile when the value drops below a certain amount. You should still carry liability insurance to make sure you are protected from a lawsuit if you should be involved in an accident that is ruled either partly or primarily your fault.
Property damage covers the repair or replacement of property other than another automobile. If you should happen to lose control of your vehicle and do damage to someones home or some other property, this type of insurance will cover those costs.
It is important to have uninsured motorist coverage because some people do not carry any insurance at all, in spite of the fact that driving without at least liability is against the law in most states. Uninsured motorist coverage will protect you from the loss of your property and injury to yourself or passengers in your vehicle if you are involved in an accident caused by an uninsured motorist.
Comprehensive is the type of insurance that covers smaller incidents that really are not the fault of anyone. An example of this would be a stone that is kicked up from the roadway and cracks your windshield. Comprehensive insurance would pay for the replacement of your windshield, but you would be required to pay a small deductible.
A deductible is the amount you will need to satisfy before the insurance company will pay for the repair of your car. Deductibles are usually required for comprehensive and collision coverage.
Shop around to find the best insurance rate possible for your area and situation. Your rate will depend on the area you live in, the amount of driving you do and your driving record.
The most important thing you can do to reduce your insurance costs is to have a clean driving record. If you have gone at least three years without any violations or tickets, your rate will reflect your good driving habits. You can also reduce your rate if you are a non-smoker and are over the age of 25.
Insurance can have many details you should consider, but if you go over your situation one step at a time with an agent, the process will be easier. This article is intended to provide the information you need to make the best decision about buying insurance for your vehicle.