What Kind Of Car Insurance Should You Purchase?

Written By: Tom Martens on December 30, 2009 2 Comments

If you drive a car, you must have car insurance. The statutes in every state require that you either have car insurance or prove your financial responsibility in some other way. However, just having the state required minimum most likely will not cover all of your car insurance needs.

Even in liability insurance coverage, you may find that you need more insurance than your state requires. The minimum for many states remains very low. Vehicle prices and medical costs have increased, however. This means that it is possible to have the state required amount of insurance but not enough insurance to cover the cost of a vehicle that is damaged or the medical bills caused by an accident.

In addition to liability insurance, if you owe money for your car, the loan company may require that you have full coverage insurance. Full coverage is actually comprehensive and collision coverage. Comprehensive insurance pays for damage to your vehicle that results from the breaking of glass, vandalism or theft. Collision pays to repair or replace a vehicle that is involved in an accident.

The finance company will get the first money that is paid for the vehicle that is totaled. Any value left after the loan is paid in full goes to the vehicle owner as a down payment on the next vehicle. In order to purchase a new vehicle, you will need to secure new financing.

Sometimes, this means that you will still owe money on the vehicle after the insurance company pays everything that they are going to pay. Gap insurance pays the difference between what a vehicle is worth and what is owed on the loan so that you will not owe money on a vehicle that you no longer can drive.

Owners of antique vehicles will need special insurance that is designed just for this type of vehicle. This insurance is usually less expensive than other insurance but does require that vehicles be parked in a garage overnight and limits the number of miles the vehicle can be driven annually. This insurance does not cover liability so it does not meet the financial responsibility laws.

You will be able to get insurance quotes by investigating on line or by contacting local insurance agents. Compare several quotes to get the best coverage and the best prices.

If you drive an automobile, you must have Car Insurance. The statutes in every state require you either have Car Insurance or proof of your financial responsibility. Car Insurance quotes are thus important.