If you own a vehicle, then you will undoubtedly be required to purchase car insurance. Yet, there are several things you need to know about car insurance, especially if you have never before purchased a car insurance policy. In fact, finding good car insurance is more than the mere act of finding affordable car insurance. Rather you will need to familiarize yourself with the different kinds of car insurance policies available and what each of the car insurance policies covers.
Obviously, no one can drive a car without having the proper car insurance well you could, but it would extremely illegal and you run the risk of losing both your car and in your license if you do so.
Therefore, before even registering your vehicle you will need to purchase a car insurance policy. Why? Besides the obvious fact that having a car insurance policy is the law, by having a car insurance policy you will not only be protecting yourself in the result of an accident, but you will be protecting anyone else in the vehicle with you. When you purchase car insurance you will, at minimum, be required to have liability car insurance.
Liability car insurance covers injuries to your own person and injury to other parties. Ultimately, you will be required to purchase the amount of car insurance that any particular state or location demands—depending upon the state you reside in.
What needs to be realized by consumers however, is that basic liability car insurance is the absolute minimum amount of car insurance that one can legally have—although this may mean a more inexpensive car insurance policy, when it comes to coverage the basic liability car insurance is not always the best thing to have. Basic liability car insurance coverage has not increased over time with inflation—at least in terms of coverage. When a driver gets in an accident, many things will not be covered with basic liability insurance.
This is why when consumers lease new vehicles they are required to have full coverage—including glass and vandalism. By having a car insurance policy that covers everything, car dealers are ensuring that their property is fully protected while it is being leased. Full coverage is something one should consider investing in if they are planning on purchasing a car insurance policy. Although basic liability car insurance is suitable for small accidents and the like, it is very unlikely that such a car insurance policy will really protect the consumer from great losses in the event of a significant accident.
For example, if a driver is in a terrible accident, with a basic liability car insurance policy much of the damage may not be covered at all. Moreover, if the driver hurts someone in an accident, the basic coverage provided by their car insurance policy may not even touch the amount of bills incurred from the event.
What happens when a driver doesn’t have enough car insurance coverage? Lawsuits can follow and in a lawsuit a driver can lose quite a bit more than they bargained for, especially if the driver has assets that liens can be set against. Clearly, getting effective and efficient car insurance coverage only serves to protect the driver and if one is shopping for a car insurance policy they should bear such facts in mind.