What car insurance do you need, and why?

Car insurance has not always been seen as necessary, and even though it has been around for more than 100 years, many people still don’t see the need to have it. The biggest reason why people don’t have car insurance is because they think they don’t need it or that it’s too expensive. But, here are some reasons why you should get car insurance and why it might be cheaper than you think. There are different types of car insurance policies, so check out all of your options before you decide which one to get.

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Buyer’s guide to buying auto insurance

Before purchasing auto insurance, check to see if your state requires it. You can then look online for information on your state’s website. The National Association of Insurance Commissioners also offers an informative site on how to buy insurance policies. Most state departments of motor vehicles websites offer tips on how to save money through various discounts and what types of policies to consider buying; most provide a list of companies that sell in your area along with their rates—it may be tempting, but don’t just choose one randomly.

How auto insurance works

The only way to avoid paying for auto insurance is to not own a car. It’s like having a house but not getting home owners or renters insurance—it simply doesn’t make sense. Even if your automobile has its own finance company that provides coverage as part of your monthly payment, it’s still up to you (and your bank) to pay out of pocket in case there’s any damage done to other people or vehicles during an accident. There are several different types of auto insurance policies available, including liability-only policies, comprehensive policies and collision-only policies. You can also purchase gap coverage, which will cover any difference between what your car is worth now and what you owe on it.

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Choosing what coverages you need

Most basic auto policies will cover your liability to other drivers in case of an accident. Liability is known as Bodily Injury Liability (BIL) and Property Damage Liability (PDL). You may also want to consider adding collision and comprehensive coverage. Collision pays for damage to your vehicle if you cause an accident with another car or object. Comprehensive pays for damages from things like hail storms or flooding from a burst pipe. If you don’t have these coverages, your lender could repossess your car if it’s damaged beyond repair. Also, be sure to check into uninsured/underinsured motorist coverage. This protects you in case someone else causes an accident and doesn’t have enough insurance to pay for all of your damages. Your premium might be higher depending on how much protection you want. For example, if you live in a high-risk area, then higher limits are probably worth it.

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Finding ways to save on your policy

When it comes to saving money on auto insurance, many people go with cheap or minimal coverage (because, after all: what is a fender bender or a slight dent worth?). While that may make sense for your bank account in the short term, it’s not worth risking your life over. You should always opt for maximum coverage when possible so that you don’t have to pay more out of pocket if an accident happens. Here are a few ways to save on auto-insurance premiums without skimping on safety.

Here are some tips to lower your rates without compromising safety: Buy as much liability coverage as you can afford; opting for less than $100,000 in protection leaves too much room for error. Even if you have no assets and no dependents—which would mean that you won’t be compensated financially in case of an accident—you should still get enough liability coverage to cover any hospital bills from accidents caused by your vehicle.