Buying a vehicle is an exciting opportunity. Before you can roll off the lot, though, you need to have the right type and amount of auto insurance in place. It's important to know what your insurance requirements are.
Do this before you buy a new car. You don't want to rush this decision.
Liability Insurance
Most states require all drivers to maintain liability auto insurance. Some states allow drivers to buy surety bonds with a sizable down payment to cover these costs. Most drivers must maintain liability insurance continuously. It protects other drivers in situations where you cause an accident.
State laws vary. Most states require bodily injury coverage and property damage coverage per accident. Some others may require personal injury protection, or other coverage. However, these minimums are often very low. You may wish to increase how much coverage you have to provide further protection.
Comprehensive Coverage
If you buy a vehicle with a loan, your lender may place additional requirements on you for car insurance. The lender is essentially paying for the vehicle. As a result, it wants to protect the investment at least until you pay off the loan. Most lenders require comprehensive auto insurance.
This type of insurance protects your vehicle from non-collision incidents such as fires, theft, natural disasters and weather. It covers damages to your vehicle.
Collision Insurance
This type of insurance provides financial support to you. It applies when you cause a collision with another car or other object. It helps to pay for the cost to make repairs to your car. Most lenders require collision insurance as well.
Other Coverage Requirements
Your lender will make it clear which types of auto insurance are necessary. Lenders will not agree to the terms of the loan if you fail to meet these requirements. Your car dealership can help you determine what these requirements are. They may include:
- Uninsured and under-insured motorist coverage. This provides support to you if another driver does not have adequate coverage for your needs.
- Personal injury protection, to help cover medical expenses not covered by another driver's liability insurance.
Speak to your car insurance provider before buying a vehicle. Ask questions. Provide insight into what you plan to buy. Then, get your auto insurance set before making your purchase.
Need auto insurance? Look no further. Call Stahlka Agency at 716-634-7070 and we can help you get a fast, free policy quote.