What things you should know about your first auto insurance policy

Buying your first car is an important step. The independence that comes from having your own pair of wheels is a great privilege. At the same time, owning a car means that you have to make an important decision: what coverage do you need in your first clean car insurance?
It is tempting to ask your agent for the cheapest policy. After all, now that you have a car, there are many other costs you have to bear. However, once you fully understand what each part of your car insurance covers, you can decide that cheaper is not necessarily better. Think about it: if your car was damaged in an accident or if you seriously injured someone, a few extra dollars of insurance a month can be money well spent.
Here is some of the general coverage that you should consider for your auto insurance policy.

COVER THAT HELPS PAY THE DAMAGES THAT CAUSE YOU

There are two types of liability insurance. Both are required by law in most states.
Liability for bodily injury: If someone is injured as a result of a car accident that you caused, this coverage can help them pay their attorney's fees, medical expenses and loss of income. This coverage often includes two separate limits: one for each injured person (for example $ 50,000) and a second for each accident (for example $100,000).
Liability for material damage: If you damage someone else's property with your vehicle, e.g. B. a fence or a garage door, this cover can protect you. Property damage coverage can help compensate the other party for their losses, so you don't have to pay for them yourself.

A COVER THAT PROTECTS YOU IN THE EVENT OF AN INJURY

Personal Injury Protection (PIP): If you are injured in a car accident, this insurance coverage can help you pay your deductible (if any) and medical expenses that exceed your health insurance limits. This coverage can also help you pay your lost wages and “lost time,” such as B. Pick up your kids from school while you relax. In the worst case, PIP can help cover your funeral costs. Please note that PIP is not available in all states. Learn more about personal injury protection.
Medical payments: As with PIP, this coverage can help you pay your medical bills related to a car accident. However, this coverage also extends to passengers and a family member who was driving the car at the time of the accident. If you or a family member is injured in another car or as a pedestrian, this coverage can help cover medical expenses.

COVERAGE THAT PROTECTS YOU FROM UNINSURED DRIVERS

Uninsured/underinsured driver: This coverage can protect you if you are run over by a driver who does not have auto insurance or whose insurance limits are too low to cover the full cost of the accident. It can help you pay your medical bills and, depending on your state's insurance laws, can damage your vehicle.

COVER THAT PROTECTS YOUR VEHICLE

Collision: If you need to repair or replace your vehicle after a collision with another car or property, this coverage can help cover the costs.

Guaranteed asset protection (GAP):

If your vehicle is lost or stolen in an accident, your insurance company will generally pay you a fair market value for the car. However, if you still owe a financial institution more than the car is worth, GAP coverage can help you pay off the cost difference.