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.
Many people like to carry more than the state require minimum of liability insurance. Some states have a very low minimum liability law. As the prices of vehicles and medical car has increased, the state required minimum amount of insurance may no longer be enough to cover the damage to a vehicle that is totaled or medical expenses of someone who is seriously injured in an auto accident.
Most auto finance companies require that persons borrowing money to buy a vehicle have full coverage auto insurance. This includes comprehensive and collision coverage. The comprehensive coverage is to take care of your needs for damage to your vehicle resulting from theft, glass breakage or vandalism. The collision covers damage resulting from a car wreck where you are the driver that is at fault.
The finance company will get the first money that is paid for the vehicle that is totaled. Any value left after the loan is paid in full goes to the vehicle owner as a down payment on the next vehicle. In order to purchase a new vehicle, you will need to secure new financing.
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 or other specialty vehicles will need a special insurance that covers these cars. This insurance usually has a clause that your car must be parked in a garage overnight and also limits the annual mileage you can put on the vehicle. The insurance does cover car shows and damage that may occur as you show your vehicle. It does not include liability and will not meet the financial responsibility laws of your state.
You will be able to get insurance quotes by investigating on line or by contacting local insurance agents. Compare several quotes to get the best coverage and the best prices.
If you drive a car, you are required to have Car Insurance. The statutes in every state require you either have Car Insurance or proof of your financial responsibility in case of an accident. Car Insurance quotes are thus of utmost importance.
Tags: Auto Insurance, Automotive Insurance, car insurance, Vehicle Insurance