Buying car insurance for the first time is not as simple as you may think. Yes, you can go online, fill out an application, and have a copy of your policy within a few minutes, but do you know what you have?
Numerous terms and industry lingos should be understood, and it must be known that not all insurance carriers are the same. You will never get the same offer from every agent, and the premiums you pay will vary greatly.
It is essential to go into the task with some knowledge that can only be achieved by learning. This is why we are here, so let’s get to it.
- Premiums – This is the amount you will have to pay to receive the auto insurance policy. The company that you have chosen to go through will offer you the ability to pay yearly, every six months, or monthly. Always pay by the year if possible, if not every six months. Paying monthly makes it easy for you to afford, but it will cost you more in the long run because of the company’s fees.
- Deductible – This is the amount you will have to pay out of your pocket if you ever get into an accident and report it to the insurance carrier. You can adjust this number up and down. The higher it is, the cheaper your premiums will be. But that will also mean you must pay more upfront before the insurance company covers any expenses. Be very careful not to go so high on this amount that you cannot afford to pay it if needed.
- Claim – Whenever you have to report an accident to your insurance company, that is called a claim. This is how you get the insurance company to pay out on the expenses. The thing is, though, that every time you file a claim, your premiums will go up. If you have a minor accident and can pay for the repairs yourself, there is no need to file a claim. Only file one when absolutely necessary.
- Compare Policies – Take the time to compare the policies from as many insurance carriers as possible. Use an online platform that has already down the research so you can get the most affordable car insurance available without giving up any of the coverage you need. Never take the first offer you get because, most of the time, it will not be the best option available to you.
- Type Of Coverage – There are numerous different options available for you to get. The area you live in will have some set requirements for the lowest amount of insurance coverage you need, so never go below that level. Other than that, you will have a few options to pick from.
- Collision Coverage – This will cover the amount of your car up to that vehicle’s blue book value (current market value).
- Liability Insurance – This is the coverage that relates to the damages and injuries that you have caused by being at fault in an accident.
- Uninsured Insurance – This will cover any damages done to you by a driver without insurance coverage.
- Comprehensive Insurance – This is a part of the policy that will cover any damage done to your vehicle that is not accident related, such as an act of nature.
- Personal Injury Insurance – This section will cover any medical expenses you need due to an accident.
That is about all there is to the basics of insurance. You want to ensure that you have coverage before you drive, so think ahead and get a policy long before you plan to be behind the wheel. The great thing about doing everything online is that you can usually get an offer and have a copy of your insurance policy within a very short time.
This helps when you have purchased a car and need to get it insured to be able to drive it home legally. If you have any questions, always reach out to someone who can answer them for you just so you are informed every step of the way.
