It’s the law! You must have insurance on your car in order to drive it.
General Information
Car insurance protects you as the owner and any passengers at the time of an accident. If you don’t have insurance there are significant legal and financial consequences. The cost of insurance can vary. There are different insurance companies and you are able to choose the one that is right for you. By comparing companies you will find the best coverage for the most reasonable rate. The easiest way to find the right insurance company for you is to do online research. Look at different options that will provide the coverage you need and is required by the state law.
Insurance rates can vary depending on variables such as:
- Occupation
- Age
- Driving History
- Gender
- Whether or not you smoke
- Distance you drive
- Type of car you drive
What Type of Insurance Do I Need?
There are several types of insurance policies that provide different types of coverage.
- Liability covers you if you are at fault for an accident. This policy pays for damage to the other vehicles and people involved and any possible medical expenses. This is the most important part of your coverage but it is important to know that liability does not cover damage to your car
- Collision coverage protects you financially and can help you get your car repaired no matter who was at fault for the accident. If you are purchasing a car through an auto loan, most lenders will require this type of coverage.
- Comprehensive coverage protects your car from all of the above and “Acts of God” such as hail, flooding, fires, theft, or if you accidentally hit an animal.
Talk to an agent for more details about each policy and remember to read the fine print before signing the contract. In order to have car insurance, you need to pay an annual insurance premium. You will want to talk to your agent to set up a payment schedule (monthly, quarterly or annually).
Resources
Start to look at insurance rates even before you buy a car so that you can factor in that monthly cost. The following websites provide information on how to choose the insurance that is right for you and get quotes from insurance companies at dmv.org/insurance/how-to-choose-a-car-insurance-company.php or carinsurancecomparison.com.