Purchasing Your First Car? Tips On Choosing Your Car Insurance
If you are purchasing your first car you need to purchase liability insurance immediately. This is because it is generally the law that every driver must have at least liability insurance. Along with liability, however, there are other types of insurance policies you may want to choose. Below are two of these types so you will be properly covered.
Liability or Full Coverage
If you are in a wreck that is your fault, liability insurance will pay for the damage to the other vehicle. This insurance will also pay for injuries the other driver may receive, such as cover their medical costs. It will also likely cover time they must miss from work due to the injury. Liability does not cover damage to your own vehicle, your medical costs, or your missed time from work, however.
If you have an older car that is not worth a lot of money and you could easily replace it then liability would work well for you. This will help you save a lot of money because liability is less expensive when compared to full coverage.
If you purchase a newer car then you should choose full coverage. This not only covers damage and injuries to the other driver but also covers damages to your car, as well as medical costs and missed time from work if you are injured in the accident.
Umbrella Policy
Another type of insurance policy you may want to consider is an umbrella policy. This type of policy takes over when money runs out on the current insurance so you can have the entire cost of your car replaced, and all your medical bills paid for. If you are severely injured in a car accident the insurance policy you purchase may run out and not cover everything.
The umbrella policy will also protect you from lawsuits that may be filed against you. This can prevent you from losing assets, money you have saved, and more.
You can also use an umbrella policy on your home and boat, if you prefer. Some insurance companies will offer a discount if you insure more than one thing.
The umbrella policy offers coverage for things that may be excluded by your liability insurance. These things include slander, libel, and false arrest.
Talk with your insurance agent from an automobile insurance company about these policies and they can go over them with you in much more detail. This will ensure that you purchase the policies that you need so you will not lose money.
