After doing some research on how to get a car, you have finally purchased one. We're sure you can’t wait to take it for a drive. But before you hit the road, we recommend you get your car insured. Accidents do happen, and when they do, insurance is what keeps personal finances from taking a hit.
As is the case with almost everything in the US, car insurance laws are also dependent on each state’s laws. However, drivers are legally required to carry an active car insurance policy in almost every state except in one: New Hampshire.
Learn how insurance policies work, their average cost, and what you should make sure they cover when you have a tight budget. There’re plenty of options to choose from, let us help you find yours.
The amount of liability coverage you choose to carry will depend on your personal preference and the laws in your state. In almost every state you’ll need to carry your state’s minimum liability coverage to drive your car on public roads. This is why it’s important to learn how much liability insurance is required where you live. Beware of the risks of getting only the minimum required, though. If you don’t have enough liability coverage to pay for the damages and injuries you cause, you might have to pay the rest out of your own pocket.
Liability coverage is the most basic form of auto insurance and does not cover you or your vehicle in an accident. It provides protection to other drivers from bodily injury or property damage caused by you in an accident. Failing to obtain necessary liability coverage could result in a suspension of your license, fines, or jail time.
Regardless of what state you live in, when it comes to car insurance policies we can broadly speak of two main categories:
It is up to you to choose which level of coverage you want to subscribe to, but know that if you choose a basic option the coverage rates will be lower. The higher you go, the higher the refund conditions will be.
As part of the minimum liability coverage, each state may require you to get the following:
Physical coverage to your vehicle is a separate coverage you can elect to add to your car insurance policy. If your vehicle is leased or financed, for example, you may be forced to hire a more comprehensive coverage. This is because the lender or dealer would want to protect their interests.
Some of the optional policies are:
Unlike most things in life, the coverage you’ll get is not strictly proportional to what you’re willing to pay; paying more for your insurance does not necessarily mean you’ll get a better insurance policy. This is why it’s essential to compare companies and prices to find the right fit and get the best deal. Make sure you check not only the price but what each policy offers.
Here are some tips that may help you decide:
Here is a non-exhaustive list of well-known insurance companies that may be worth exploring:
The minimum price you may expect to pay varies from company to company and from state to state. Most companies offer a monthly payment but you can choose to pay once a year on the anniversary of your subscription. On average, a car insurance in the US may cost around $1,674 per year for full coverage or $139.50 per month. The price may be affected by some of the following factors:
Now you know what you need to consider to get your car insurance. Don’t forget to do your research to choose the option that best fits your budget and needs. Drive safely and enjoy your stress-free ride!
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