Even for seasoned drivers, car insurance may be confusing. You may simply sign up for whichever insurance your agent or financial institution suggests to avoid the headache. Here are a few things you should know when you choose new car insurance.
Liability Has Limits
Some people only carry auto liability insurance because that’s the only type mandated by state laws. However, you have options when it comes to the amount of liability coverage, and if you only opt for the minimum liability coverage, it may not be enough to cover the other person’s vehicle, property, or medical bills after a serious crash.
For example, 25/50 liability coverage is common. This covers $25,000 in damages for each person involved, for a total of $50,000. If a crash involves multiple other people or vehicles, that liability insurance won’t go very far. Fortunately, you can typically upgrade your liability insurance.
Of course, liability doesn’t cover the driver’s own damages and medical costs, which may be why the National Highway Safety Administration estimates upwards of 10 million auto collisions go unreported every year. This is why getting the right classic car insurance is important for those who value their investments.
Finance and Lease Companies Offer It
Although drivers may only be required to hold liability insurance, they may have to add comprehensive and collision insurance to obtain a loan or enter into a lease for a vehicle. These additional types of insurance pay for injuries to yourself or your passengers and damage to your vehicle in the event of a collision during the rental.
A Higher Deductible May Be Worth It
Finding the right passenger car insurance plan for you is a balance between cost and protection. One way to strike that balance is by considering your monthly premiums and your deductible when you file an insurance claim. If you have a good driving record, you might be comfortable paying a higher deductible because you may never have to file a claim.
You May Want Gap Coverage
When buying a new car, you may have the option for gap coverage. This type of insurance covers the difference between what insurance will cover if you total a car and how much you owe on your loan. For some drivers, gap coverage is worth it because a car’s value drops as soon as you drive it off the lot. And although you can’t get gap coverage for a vintage car, classic car insurance can ensure you receive the full value when filing a claim.
With this information, you should feel ready to choose insurance. When you need a motorcycle or classic car insurance, give us a call at AOAWest today. We’ll be happy to help you find the right plan for your vehicle!