It's an exciting milestone when you buy your first car. You feel more independent when you have your own set of wheels. But, as a car owner, you must also make an important decision: What coverage does your first "on your own" car insurance policy need?
It is appealing to ask your agent for the least expensive policy. But, now that you own a car, you have other expenses to cover as well. But, once you are fully aware of all the coverage details in your auto insurance quote, you may decide cheaper is not always the best option.
Consider this: A few dollars more per month in insurance coverage might be a good idea if your car were totaled in an accident or you injured someone seriously.
So, for your auto policy, here are some coverages to consider.
Insurance that Pays for Damages you Cause
There are two types of liability coverage. They are:
- Liability for bodily injury and
- Liability for property damage
These two types of coverage are required by law in most states.
- Liability for Bodily Injury
You may be held liable for someone's injuries if you cause an auto accident. So, in this case, this coverage will help pay for your legal fees and the person's medical bills, and lost wages. This coverage includes two limits:
- Applies to each injured person and
- Applied to each accident
- Liability for Property Damage
This coverage helps protect you if you accidentally damage another person's property, such as a fence, garage door, or anything, with your vehicle. So, it may be possible for property damage coverage to reimburse another party for their losses, so you do not have to pay them out of your pocket.
Learn more about liability auto insurance.
You can be Protected if you are Injured by this Coverage
- Protection against personal injury (PIP)
In case of a car accident, the coverage may pay your health insurance deductible and any medical bills that exceed your health insurance limits. In addition to covering your lost wages, PIP may also cover any "loss of services," such as picking up your children from school, while you recover.
Worst-case scenario: It may even protect your funeral expenses. But remember that PIP is not available in all states.
- Medical Payments
Like PIP (Personal Injury Protection), this insurance provider also helps pay for your medical bills related to car accidents. You are also covered for the passengers in your car and a family member driving it when an accident occurs. Additionally, this policy can cover the costs of medical care if you or a family member are injured on another vehicle or while walking.
Auto Insurance that protects your vehicle
- During a collision
Having this coverage can help cover some of the costs of repairing or replacing your vehicle after a collision.
- Comprehensive
It can help pay for damage to your car that is not caused by an accident. Examples include theft, damage caused by animals, fire, or falling objects.
- Providing Guaranteed Asset Protection (GAP)
After a car accident, if your car is totaled or stolen, your auto insurance companies will typically pay you its fair market value. But, even if a financial institution still owes you money, GAP coverage can help cover the difference in the cost.
Insurance that Protects you from Uninsured Drivers
- Uninsured motorists
If you are struck by any motorist who does not have auto insurance or whose policy limits are too low to cover the total cost of the accident, this coverage can protect you. It can also help pay for medical costs, and also it depends on your state's insurance laws.
Wrapping it up
Auto insurance gives you a remarkable value. So many things are covered under this insurance, including bodily injuries, damages, medical bills, and more. If you are buying an auto insurance policy for the first time, this is the best option for you. With auto insurance quotes, you can protect your first car and make your future bright.