Collision Insurance Liability Insurance – Who Wins?

Website design By BotEap.comIf you are faced with buying your first car or have recently obtained your driver’s license, the most immediate thing to do is to buy car insurance. The process may seem a bit overwhelming at first, but here is some helpful information to help you determine what type of policy you need to buy.

Website design By BotEap.comIf you are a young driver or someone with a recent license who lives in the home of someone who currently has insurance, the best place to start is for that person to contact their current insurance provider. Many insurance companies require that all drivers in a home be insured with a policy. The reason is that it is very likely that at some point you will end up driving a car that is already insured.

Website design By BotEap.comAside from the risk factors that insurance sees from having multiple drivers in a household under different insurance companies, there is also a benefit for you. Often times, to encourage one home insurance provider, your insurance company will give you a price discount based on your parents’ good driving record. So it’s in everyone’s best interest – the insurance provider, your parents, and yourself – to explore this option first.

Website design By BotEap.comIf you are buying insurance for the first time or changing insurance companies, you will first need to decide what type of coverage you need to have. If your car was a gift that was paid for in full, if your car was given to you as a gift, or you bought it with your own money, you have the option of choosing between liability insurance and collision insurance. If your car has a payment, as a general rule, you will be required to have full collision insurance.

Website design By BotEap.comLiability-only insurance simply means that if you have an accident that is determined to be your fault, you will be responsible for all expenses for damage to your own car, as well as your own medical bills. This insurance covers damage caused by you to someone else’s vehicle or property. You will be required to have the minimum amount of coverage from the state, but understand that if expenses exceed that minimum amount, you may be responsible for all expenses that exceed the amount that your insurance company agreed to pay.

Website design By BotEap.comCollision insurance is required if you are making payments on a car, but it is also a good idea if your car is new or valuable. Collision insurance often doubles or triples the cost of liability alone. This is because if you are found to be at fault in an accident, you will receive the book value of the car that you have insured. If you owe money on your car, this money is used to pay off the remaining loan. However, you are not always fully protected. If the remaining amount of your loan is more than the value of your car, you may still owe money to the bank for a car that you can no longer drive, so it is important to be careful not to turn your loan upside down. car.

Website design By BotEap.comResearching is the best thing to do before purchasing insurance. Make sure your needs are met without paying for unnecessary coverage that, hopefully, you will never need to use.