Here are Some Facts You Should Know Before Buying Coverage

Before you get a car insurance quote, you should know a few things about the different types of policies first. Here are some facts about car insurance that every policyholder should know.

You May Need Certain Coverages to Drive Legally

Most states require certain levels of bodily injury and property damage liability coverage to drive legally. If you fail to meet these mandatory requirements, you could face hefty fines, the suspension of your vehicle registration, or even the revocation of your driver's license. Thus, it's important to take into account your state's mandatory requirements when you begin comparison shopping.

Car Insurance Applies to More than Just Vehicles

You might think that because you don't drive a vehicle per se, that you don't need to apply for a car insurance quote on a policy. However, most areas require that you insure any motor vehicle that is operated on their roadways. This includes golf carts, mopeds, and motorcycles. If you drive one of these alternative vehicles, you should still apply for a price estimate.

Which Company You Choose Matters

Another legal requirement most states have is that your insurer must be authorized to do business in your state. In other words, you can only obtain a price estimate from a company that has a license to operate in your area of residence. You can find out whether a company is authorized to do business in your area by checking the state's department of insurance website.

As Your Deductibles Go Up, Your Premiums Go Down

When you get a quote, it's a good idea to remember that the higher your deductibles are, the lower your premiums will be. Thus, you will minimize your expenses by maximizing your deductibles. Deductibles are the portion of the damages for which you are financially responsible when you make a claim. You should set your deductibles as high as you could comfortably pay out-of-pocket in the event of an accident.

You Don't Need Everything Offered

As you get your car insurance quote, keep in mind that you might not need every add-on offered by your insurer. For example, drivers who own a vehicle with little to no cash value do not have to include collision coverage when getting price estimates. Likewise, if you have a solid health plan, you probably don't need medical payments coverage.

If you are still curious about car insurance and have unanswered questions, have a look through some of the answers to frequently asked questions.