June 1, 2021

A Guide To Insurance Coverage For New Car Owners

All car owners must have basic car insurance coverage as required by most states. It is meant to protect them from having to pay large sums out of pocket should their vehicle get stolen or get damaged in an accident. However, not all car insurance coverages are created equal. Depending on your risk level and need for financial protection, you may want to opt for a policy that goes beyond basic coverage.

Getting the right insurance policy in California can be a confusing process, especially for first-time buyers. In this post, we give new car owners a simple rundown of different types of coverage they can look into.

Car Insurance Coverage Options

While there may be a good number of coverage options to choose from, there are a few basic ones that are frequently required by most states. These help protect you from huge financial burdens should you get into a car accident. Frequently required car insurance coverages include the following:

Bodily Injury Liability – In case you get into an unfortunate accident while driving your vehicle, this covers costs related to any injuries or death caused by the accident.
Property Damage Liability – If your car gets involved in an accident that leads to property damage, this coverage is applicable whether or not you were the one driving your vehicle or someone else. This coverage will reimburse other people whose property was damaged by the accident.
Personal Injury Protection – This option will pay back medical expenses for injuries to you or your passengers. It may also cover lost wages if you miss work as a result of your condition.
Uninsured Motorist Coverage – If you get in a car accident with a driver who is uninsured or does not have enough coverage to pay for damages, this can reimburse you for your expenses.

Apart from these commonly required coverage types, there are other options you can include in your policy. Here are some of the most useful ones that can take care of any damage to your car:

Collision– This type of coverage will pay you back for car damage incurred by collision with another vehicle or object when you are the one at fault. However, there are specific limits to this option, so it is important to take note of them first before buying. For example, collision coverage cannot be used for damage caused by mechanical failure.
Glass Coverage – This option can reimburse costs associated with broken windows and windshields, which are common in auto accidents.
Comprehensive – This protects you from other kinds of damage caused by anything other than a car accident. Comprehensive coverage may reimburse you for car damages due to hazards such as flood, vandalism, fire, falling debris, and theft.

In general, it is important to get the types of car insurance coverage mandated by your state. Take the time to familiarize yourself with the state requirements that apply to you. It would also be a good idea to run this by your insurance provider, ensuring that your policy is compliant with state rules.

Once you sign off on a policy that suits your needs, make sure to give it a thorough review. Going over your policy details and knowing exactly what you are covered for can save you a lot of money and stress later on.