Getting your license can be exciting, but it’s important to make sure you get the right auto insurance. You want to be sure you have proper protection if you get into an accident, so you do not have to pay for repair costs or medical bills out of your own pocket. The following guide walks you through a few things to consider when getting auto insurance for the first time.
The Car You Have Will Affect Your Insurance Costs
Many people getting auto insurance coverage for the first time do not realize that the car they drive will affect how much they have to pay for their policy. A newer car will cost more to insure than an older car, and a more valuable car will cost more to insure than a less valuable car. Sports cars are also more expensive to insure than sedans because they pose more of a risk to insure.
If You Have a Lien on the Car, You Need Full Coverage Insurance
When you have a lien on a car, the lien holder often requires you to have full coverage on the car. This allows them to rest assured you can have any damage repaired so that the overall value of the car does not decrease dramatically if you get into an accident. Look closely at your bill of sale to see if auto insurance is a requirement and if so, how much you need.
You Can Pay for the Coverage on a Monthly Basis
There are many payment options for auto insurance coverage. You can pay once per year, quarterly, or even monthly. This allows you to choose a payment option that suits your financial situation, so you do not have to worry about lapsing on your bill.
It is Illegal to Drive Without Auto Insurance Coverage
In most places, it is illegal to drive without auto insurance. If you get into an accident that is your fault, you may not be able to pay for the medical and repair costs and this could cause someone to get a judgment against you that could lead to you losing everything you worked for throughout life.
A Lapse in Payment Can Cause Termination of Coverage
It’s important to make your payments on time when you have insurance coverage. If you do not pay on time, the company can terminate your coverage without you even knowing it. If you get into an accident when your coverage has lapsed, the coverage will not be available to pay for the damage. If possible, have the coverage come out in automatic payments or pay it early, so you do not have to worry about the insurance company not getting the payment on time.
If you need to make a claim with your insurance company, you can call them directly to get the help you need. You may need to know your policy number or at least personal information about yourself so that they can look up your account. If you notice any issues on your monthly statement, it’s important to address them right away, so you are paying the right amount for your coverage.
For more information about getting auto insurance contact the experts at Absolute Choice Insurance!