When you are planning to make an automobile purchase, you usually think about the price of the car, and may even remember that there will be sales tax and licensing and registration costs. However, you should also remember that there will be costs for car insurance. When you are looking at the best car for you to purchase, you need to contact your insurance company for quotes on the different cars. This can help you decide which car you will buy.
There are many factors that go into determining how much a car insurance premium will be. First, the make and model of the car are figured in, as well as the year it was built. In addition, if there are special appointments or other specialty items, that will affect the cost as well. In general, a more expensive car will cost more for insurance. However, you should also know that there are certain cars that are stolen more often than other cars, and this list may change every year. If the car you are looking at is on that list, you can expect to pay more for the insurance.
There are different types of car insurance coverage that you will either be required to have or that may be optional for you depending on the state you live in and whether or not you finance the vehicle. Nearly every state will require you to have liability insurance to cover the costs incurred by the other party in case you are the cause of an accident. Liability coverage will pay for the repairs to their car as well as for medical costs related to injuries from the accident. Even though this is a required coverage, the limits may be low and you may want to increase this coverage and should discuss this with your agent.
If you are financing the vehicle, your bank will require you to carry collision and comprehensive insurance. These types of coverage cover your car in the event of an accident – either with another vehicle or something else, such as a collision with a mailbox or fence. The bank wants to make sure that you keep the car in good shape until you sell it, because in effect, they own it until the loan is paid off. Comprehensive insurance covers things that are not due to collision, including windshield replacement.
Some states will require uninsured and underinsured motorist coverage. This is because some people only carry the minimums, which may not cover all of the costs that can be incurred when an accident happens. These types of car insurance cover you when it is the other driver’s fault.
As you can see, there are many different types of car insurance coverage available. Of course, these are only the most common ones, and there are many more. It is a good idea to discuss your insurance needs with your agent so that you can get exactly what you need. Not only will you get what you need, but you will know what you are paying for and what it can do for you if you are ever involved in an accident.