So You Want to Buy Auto Insurance
Now you got a car and you need insurance. And the reason you need insurance is simple. Auto insurance is a pact between you and a car insurance company. You pay a premium, usually every month, and the insurance company in return promises to pay for certain car-related monetary losses during the life of the policy. If you don't have insurance, you could run into paying the full cost of damage you cause others or repairing or replacing your car if it's damaged or stolen.
Every state has specific, though differing, car insurance requirements. Your insurance agent should know what is needed in your state. But the general rule is that you need one of the following—or both—to operate a car on the road:
- Liability coverage for losses you cause others
- No-fault coverage to compensate you and your passengers for medical and related expenses caused by injuries from a car accident
Even if coverage isn't required by a state's laws, drivers must be able to cover the costs for losses they cause others. That's where insurance comes into play. People who have car insurance have secured the best way to comply with the coverage of expenses from automobile losses. And regardless of a state's laws, if you finance a car, coverage for car damage is usually necessary.
Before you buy car insurance, create a list of reliable insurers. Call your state insurance departments to see if they offer information through the Internet about companies that have good track records and others who have complaints made against them. And don't rule out referrals from friends and family who have their own experiences.
Before you make the ultimate decision in selecting the insurance company, contact an agent by phone or visit in person if you have the time.. That's when you can ask questions and pinpoint what coverage exists for you. If the agent sounds like he or she is from another planet , using only technical insurance language to answer your questions, look for someone else.