How to choose the right auto insurance coverage for your new car

Did you buy a new car during the pandemic? Remember this critical step. (iStock)

The coronavirus pandemic is causing many Americans to avoid public transportation. The result? Increased sales of personal cars, especially at dealerships offering door-to-door delivery. Indeed, according to a study of the Cars.com automotive market, vehicle sales increased 35% at dealerships offering this hands-off benefit. In denser transit-dense cities like New York and Chicago, sales are on the rise even more (81% and 65%, respectively).

If you are one of the millions of people who have bought a car since the start of the pandemic – or planning to do so in the near future – remember to purchase the right insurance before sitting behind the driver’s seat. . As with buying your car, buying insurance can be done online just as easily. Find out about Credible’s auto insurance options now.

Here’s what you need to know to find an auto insurance policy and get coverage:

How To Find The Right Auto Insurance Coverage

Auto insurance is important for several reasons: First, in most states, you must have it to drive a vehicle. These requirements generally include a certain level of liability for both property damage and personal injury. In most cases, you will be subject to penalties, such as monetary fines or even the suspension of your license, if you do not carry at least the minimum amount.

Plus, auto insurance protects you and your vehicle. If you damage another car or injure someone in an accident, it can help cover repair costs and the other driver’s medical bills. Conversely, if you or your car is injured in a collision, it can also ensure that your expenses are paid.

6 types of auto insurance coverage you should know

There are a number of things that auto insurance can cover. Here is an overview of the most common types of blankets:

  1. Civil liability for material damage: This coverage is used to cover expenses associated with property damage i.e. damage to car, home, mailbox, lamppost, or any other item of someone else’s. other in an accident that you cause.
  2. Collision: Collision coverage is similar to general damage liability, only it applies to your car, not to other drivers. It will cover the cost of repairing damage to your vehicle (less any deductible) in the event of an accident.
  3. Liability for bodily injury: This covers the costs of any injuries sustained by other drivers or passengers in an accident for which you are responsible. Your state probably has a minimum requirement for personal injury coverage.
  4. Medical payment coverage: Similar to personal injury liability, this coverage is used for medical bills and other expenses associated with an injury. The difference? It’s for you and your passengers, not the other way around. This can also be referred to as injury protection or PIP.
  5. Full: Comprehensive coverage is a kind of catch-all coverage that will cover losses suffered in the event of theft, natural disaster, vandalism, or an accident involving an animal.
  6. Coverage for uninsured motorists: Also called underinsured motorist coverage, it protects you in the event that you are struck by an uninsured driver (or a driver who does not have enough coverage to pay for the damage). With this coverage, your insurance would pay the difference between what the other driver pays and what is actually needed to repair the vehicle. It is also useful in hit and run situations.

There are also additional coverages that you can choose from, such as space and window coverage, although these vary by insurer. This is why it is important to compare several car insurance companies, as well as their coverages, before purchasing a policy. Credible Auto Insurance Market can help you with this process.

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How to buy auto insurance

To buy auto insurance, you will need to get quotes from a number of insurers. You can do this by contacting each insurer separately (most have quote forms on their websites) or through an online marketplace like Credible.

Before shopping, make sure you know the minimums required by your state. You can usually find it from your Department of Motor Vehicles.

Once you have a few quotes and you’re ready to start comparing plans, you’ll want to look at a few factors including the premium, what coverage is offered, and when the premiums are due. Some insurers may give you a lower monthly price, but it’s actually a six-month policy. Others may seem higher, but the policy is much longer (usually a year). Be sure to compare apples to apples.

Finally, check with insurers about potential discounts. Many offer premium reductions for good credit, bundling your policy, being a good driver and more, so see what you might be entitled to before you go ahead.

THIS IS THE BEST WAY TO REDUCE YOUR AUTOMOTIVE INSURANCE COSTS

How to choose the right auto insurance company

Beyond pricing and coverage, you should also look at an insurer’s reputation, as well as their claims processes. Some offer claims online and through apps, dramatically reducing post-accident hassle.

At the end of the day, it is essential to compare your options. If you’re looking for the best coverage at the best price, use Credible to start shopping now. In a few minutes, you will obtain personalized and free quotes from several insurers.

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Justin D. O'Neill