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 underinsured 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 Amco Insurance at (409) 943-5555 and we can help you get a fast, free Texas City auto policy quote.