When it is time to buy a new car, having a car insurance quote at hand can help put your mind at ease. Car insurance is no laughing matter, but it’s one area where many drivers end up paying more than they should. Knowing what type of car insurance is right for you and your vehicles is helpful, but what you don’t often think about is applying for car insurance quotes online. You may think that you’ll be able to get the most accurate quotes when you speak to an agent or broker in person, but those quotes often don’t consider your vehicle’s exact make and model.
When people want to buy a car, one of the first things they’ll do is look online for a car insurance quote. This seems like a no-brainer since car insurance is a necessity for buying a car (depending on your state, buying a used or new car without proof of insurance can land you in hot water). But most people don’t realize that car insurance quotes, also known as auto insurance quotes, aren’t what they used to be. Not only do they now provide more than just the basic car and driver information, but they can be a powerful tool for drivers, helping them make smart financial decisions.
What Are the Types of Car Insurance?
It is easy to become overwhelmed by the options when it comes to car insurance. There are so many types of car insurance, and liability and collision insurance are just a handful of them.
Liability insurance is the name given to coverage purchased by a vehicle owner to protect against accident-related bodily injury and property damage claims. Personal injury protection (PIP) insurance is a type of vehicle insurance coverage that covers medical costs and lost wages resulting from crashes with other drivers or with inanimate objects.
Collision insurance protects you against financial loss if you cause an accident that results in damage to the property of another person. To put it another way, you should have liability car insurance for accidents involving your car or truck. Why does it matter if the other driver has insurance or not? Because without collision insurance, you are responsible for paying for all the damage yourself. So, getting collision insurance is pretty important.
Car insurance is one of those things that’s easy to ignore until you need it. Then you realize you need it, and unless you’re paying in cash for a new car, you’re probably going to be forced to pay. It’s important to know what types of car insurance you need since you can get charged for different amounts based on your personal situation.
Do I Need Collision and Liability Coverage on My Car?
Buying car insurance can seem overwhelming, especially the liability and collision coverage questions. Liability coverage is required by law and is relatively inexpensive. Collision coverage is optional but highly recommended if you have an older car that will cost too much for replacement parts if it’s totaled in an accident. Luckily most accidents are small fender benders, but if your car is seriously damaged, collision coverage will kick in to pay for repairs or even the replacement value of your car.
Car insurance quotes are estimates based on basic information about your car, your family, and your driving history that can help you get a better idea of what you can expect to pay for car insurance in the future. They can also help you understand what information you need to provide an insurance company with the best rates.
Many people wonder if they need collision and liability insurance coverage on their cars. Whether you need these coverages depends on several factors, including the type of car you drive, where you live, and what kind of driver you are.