Buying your first car is a very exciting experience. With your own vehicle comes your own independence, but it also comes with responsibilities. As a driver, you are at liability for the maintenance, damages, and repairs of your own vehicle and others that are involved. To keep yourself and your savings safe, you must consider purchasing a car insurance policy.
Common Coverages to Consider for Your First Car Insurance Policy
Purchasing a car is an investment. It is important to add in your insurance costs into your overall budget before you choose a car. Although it is tempting to just choose the least expensive policy, here are a few reasons you should take the time to consider coverages for your car insurance policy.
Car Insurance Coverage for the Other Person
Your auto insurance policy has coverage designed to protect you in case you are found at fault in an auto accident. Bodily injury coverage will protect you in the event that the other party is physically injured. Your bodily injury coverage pays for items such as medical bills, hospital stays, lost wages, and pain and suffering.
Property damage coverage protects you in the event that you damage another person’s automobile. This coverage not only protects against physical damage to another vehicle, but you are also covered if you damage city property (ie. sidewalks, traffic signals, or signs) or someone’s home.
Car Insurance Coverage for Your Family
According to the Insurance Information Institute, one out of every seven drivers in the U.S. is uninsured. Uninsured motorist coverage can help protect you and your family if you are involved in an accident with an uninsured driver. Uninsured Motorist Bodily Injury coverage covers your medical expenses, lost wages, emotional distress, pain and suffering.
Uninsured Motorist Property Damage will cover damage to your vehicle. With UMPD coverage, you can add on what is called a collision deductible waiver. This means that if you are in an accident with an uninsured driver, your insurance company will reimburse you for your collision deductible if the other party is found at fault.
Your auto insurance will also provide coverage for Personal Injury Protection. Personal injury is defined as anything other than bodily injury, arising out of an act or activity of an insured which results in injury to another. PIP will protect you in case any of the following occurs: false arrest; libel, slander, or defamation of character; and malicious prosecution.
Car Insurance Coverage for Your Car
Auto insurance covers damage to your vehicle resulting from physical collisions and anything other than collision. By carrying comprehensive and collision coverage on your policy you are ensuring that your vehicle is protected under any circumstances.
With comprehensive and collision coverage, your insurance company will pay for any damage to your car, less your deductible (money you pay out of pocket). If the damage is less than or equal to your deductible, you will be responsible for the damages. Anything over your deductible will be covered by your insurance.
Finding the Right Car Insurance Policy for You
Finding the right car insurance policy that fits all of your needs can be an overwhelming experience for a first time buyer. There are many local insurance agents in the Torrance area that can not only help walk you through all of these coverages, but also help set you up with a car insurance policy tailored to your exact needs.
Starting this process without the proper research can be a costly mistake. We hope that this short, but comprehensive guide will help you choose the best car insurance policy for your needs.