The Basics Of Car Insurance
Car insurance is one of those necessary evils that we all have to deal with, but that doesn't make it any less annoying. From the confusing jargon to the high premiums and sky-high deductibles, nothing about car insurance is easy peasy. But don't worry! We've put together this post on the basics of car insurance so that you can do your best to protect yourself and drive safer.
What Is Car Insurance?
Car insurance is a type of protection that can be purchased to protect you and your assets if an accident occurs. Policies vary from state to state, so it's important to know what your policy covers before you make a claim. Some companies will cover the cost for repairs of your car, while others may include a cash settlement if it's totaled. Theft protections are another common feature in car insurance policies, whether that means covering the cost of replacing the car or paying off what you still owe on it.
Who Needs Car Insurance?
Each state requires drivers to have insurance on their vehicles in order to drive legally. Depending on your state, your vehicle must either be fully insured, or you can supply evidence that you have an insurance policy in place. The amount of coverage that you must have will also vary by state, so be sure to check out your local laws before you head out into the world.
Car owners are not the only people who may need to purchase insurance policies for their vehicles. People who don't own a car can still drive others' cars as long as they have auto insurance. New teen drivers are also required to have specific types of insurance in some states before they can get their driver's licenses.
How Much Does Car Insurance Cost?
Car insurance premiums will vary depending on a variety of factors, such as how old you are, whether or not you've been in accidents before, and even the type of coverage that you choose. As a rule, the more comprehensive your car insurance policy is, the higher your premiums will be. But car insurance isn't just about insuring your car against damage in case of an accident or theft; it also protects you against lawsuits. Since drivers who are sued can end up paying between $10,000 and $20,000 to their attorney alone if they lose their case, it can be important to buy affordable insurance.
What Are Car Insurance Deductibles?
One of the biggest factors in the cost of your car insurance premiums will be your car insurance deductibles. A deductible is simply the amount that you pay out of pocket toward a claim before your insurance company steps in and helps. The higher your deductible, the lower you'll be able to get your premium.