No matter if you are 18 years old or 45 years old, shopping for your first car insurance policy can be a scary and somewhat overwhelming experience. There are so many different policies out there and different car insurance companies to choose from that a first time insurance buyer can easily get overwhelmed with all the information out there.
To make sure your first insurance buying experience a little easier, here’s a look at some of the most frequently asked questions that almost every first time buyer wants to ask but might be afraid to.
Do I Need Car Insurance and Why?
Yes, you are required to carry car insurance if you are a licensed driver or if you own your own car. Every state has varying laws regarding how must carry insurance and what type of policy you must hold. In some states, you can’t even obtain a driver’s license without showing proof of insurance.
Why do you need insurance? Simply because it’s the law. While you could drive without it the penalties for not obtaining and carrying the proper insurance policies are greater than if you had just purchased an insurance premium to begin with.
Do I Have to Have My Own Policy?
First car insurance buyers often wonder if they have to purchase a separate policy for themselves and the answer is not always. Unless you own your own car, you can sometimes be added to an existing policy and still be considered an insured driver. Every state varies on this idea and some do require individual insurance policies but most states will allow you to be added to an existing policy and still be covered.
What Insurance Policy is Required by Law?
Almost every state in the United States requires that you carry liability insurance. Liability insurance will cover any damage that is done to another car should the accident be your fault. This is the most basic form of car insurance available from various car insurance companies.
What Other Car Insurance Policies are Available?
While liability insurance is required by law, some of the other insurance policy options are not required. You can add them to your insurance policy if you wish. Other car insurance policy options include: collision, which will cover damage to your car, bodily injury liability, which covers injuries to the other driver and/or their passengers in the case the accident is your fault, vandalism or theft coverage, which protects against damage to your car that is not a result of an accident.
What is a Good Price for Car Insurance?
There is no right or wrong answer to this. Car insurance rates will vary depending upon the type of car you drive, your previous driving record, your age, sex, grades in school (if you are school age), and other factors. The best way to ensure you are getting a good car insurance rate is to call various companies and get quotes to compare. This will help you get an idea of what a fair price is for car insurance.
Shopping for your first car insurance policy can be frightening, but going into the experience prepared with the knowledge from these frequently asked questions should help make it an easier and less terrifying experience.