Car insurance is the first thing you need to look into when looking to buy a car. You will not be able to leave any dealership before securing insurance for the car you are buying. But, if you’ve never purchased car insurance before, it can be challenging: there are plenty of insurance companies to choose from and everyone seems to be offering a great deal.
So, what do you need to know about car insurance?
Car insurance is meant to protect you and your car in the event of a car accident. When an accident happens, you have a set amount to pay (usually a deductible) and the insurance pays the rest. Below are some things you should know before getting car insurance.
Learn the insurance minimum for your state
In Ohio, you’ll need at least the required state minimum amount: $12,500/$25,000/$7,500. So in the event of an accident, if you’re at fault, you’re covered up to $12,500 for bodily injury for each person involved, with a total maximum of $25,000 coverage per accident. This doesn’t mean you have to buy the minimum. Get what is comfortable for your budget. The agent can also recommend the average that everyone usually gets.
Make sure you know what you’re covering
There are many different parts to car insurance and you can change the amount of coverage for each part.
- Liability coverage- is insurance protection that pays for bodily injuries or property or auto damages to another motorist that you were liable for.
- Collision insurance- protection covers damages to another motorist’s vehicle or property when no other parties were involved.
- Comprehensive coverage- also known as “other than collision” coverage, pays for losses not caused by a (car) collision, such weather, natural disasters, fire, floods, earthquakes, rioting; anything that can cause damage to your car necessitating an insurance claim.
- Additional coverages*- like uninsured/underinsured motorist protection, gap insurance, roadside assistance or rental car insurance are relatively affordable add-ons to complement your auto insurance policy.
Deductibles influence premiums
If you didn’t know, the premium is what you pay per month (or year) for the insurance. The higher the deductible on your insurance policy, the lower your premiums are. That, of course, means that you may have to shell out more money when an accident happens if you’d like your monthly payment to be at its lowest. This goes the opposite way as well: you don’t think you’ll have much money for a deductible? Fine but you’ll pay a higher premium.
Most insurance companies offer discounts for different things. You can bundle together some of your insurance needs and save money overall. For instance, we qualify for a multi-line and multi-car discount. Our insurance company covers both our cars which gives us the multi-car discount. We also have homeowners insurance through them so we get multi-line. We also got that discount when we were renting (because we had renters insurance).
It is great to make sure you do your research when looking for car insurance for your car purchase. You’ll want to make sure you have the perfect coverage for you, your car, and your budget.