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Car insurance FAQ

Why should I get car insurance?

First of all, car insurance is legally required for operating a vehicle in most states. In some states you won't be able to register your car without an insurance policy. It is also used as a proof of financial abilities in case of damage or injuries caused by the driver. But of course, the main reason for getting car insurance is protecting your car against typical perils you face while driving – accidents. Car insurance covers the costs of repairing your car and paying for the medical insurance in case someone is hurt, and it costs you much less than paying for everything out of own pocket.

How much coverage should I buy?

It depends on your particular situation. There's no such thing as universal coverage or full coverage, so you'll have to tailor your policy in order to get the right amounts and types of insurance. First of all make sure that your liability coverage meets the state requirements and preferably exceeds it, because the state required limits are often too small for covering a serious accident properly. If you drive a new car, you would want to purchase collision/comprehensive coverage as well. Consult with your insurance agent about your particular insurance needs in order to get a clear picture.

Should I buy uninsured motorist coverage?

It's an optional type of coverage and you aren't required to purchase it with your car insurance policy. However, if you live in an area with heavy traffic and you drive around a lot, you should consider buying uninsured motorist coverage because the chance of ending up in an accident with an uninsured or underinsured car owner in your situation is very high. This coverage will pay for the damage to your car and injuries inflicted by the other party like if it was their insurance policy paying for it.

How should I buy car insurance?

The main thing you have to remember when buying insurance is that you have to shop around for the best rate. It's not very bright to buy the very first policy you run across because you may end up overpaying for coverage. Try to get at least five car insurance quotes from different providers and you will see that the rates will vary for the same car. Each company has different method for calculating their rates and this results for the difference in rates. Use it to your advantage and you may get a good policy with plenty of coverage and reasonable premiums.