Which Kind Of Car Insurance Do You Require?
If you drive a car, you must have car insurance. The statutes in every state require that you either have car insurance or prove your financial responsibility in some other way. However, just having the state required minimum most likely will not cover all of your car insurance needs.
Even in liability insurance coverage, you may find that you need more insurance than your state requires. The minimum for many states remains very low. Vehicle prices and medical costs have increased, however. This means that it is possible to have the state required amount of insurance but not enough insurance to cover the cost of a vehicle that is damaged or the medical bills caused by an accident.
When vehicles are financed, the company that finances the loan often requires more insurance on a vehicle. They want to be paid even if your vehicle is totaled in an accident. Most auto loans require that owners carry comprehensive coverage and collision damage. This is sometimes refereed to as full coverage insurance. It pays for damage due to accidents, vandalism, theft or breaking of glass.
If your vehicle is a total loss, the insurance company will pay off the balance of your loan before paying any money to you. If there is still money left over after paying off the loan, they will write you a check to use toward the replacement of your vehicle.
Sometimes, especially in cases where there are low down payments made, there will be a gap between the amount you still owe on a car that is totaled and the blue book value. Insurance companies pay the blue book value, so you can be left owing money on a totaled vehicle unless you purchase gap insurance. Gap insurance pays the difference between what the insurance pays for the blue book value and the amount owed on the vehicle.
Owners of antique vehicles will need special insurance that is designed just for this type of vehicle. This insurance is usually less expensive than other insurance but does require that vehicles be parked in a garage overnight and limits the number of miles the vehicle can be driven annually. This insurance does not cover liability so it does not meet the financial responsibility laws.
It is easy to get car insurance quotes, either off the internet or from a local insurance agent.
If you drive a vehicle, you are required to have Car Insurance. The statutes in every state require you either have Car Insurance or proof of your financial responsibility. Car Insurance quotes are thus essential.
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