What You Need to Know Before Buying Auto Insurance for the First Time

While even planning out the steps to get a new car for yourself, there are lots of if’s and but’s - you might just go about purchasing a new one or spend on a used car or maybe get a giant on lease. However the toughest bit in here is to decide exactly how much you can afford to spend or should maybe spend on getting it to the decisions of financing (in case you are not paying for it entirely in cash) and insuring the same.

The Importance of Car Insurance

The planning of getting your giant – the last bit of getting a proper insurance is extremely important for the car and you. This is simply due to the fact that the insurance impacts the percentage of protection your car will get in case of any untoward future accidents or damages, however not to mention the impact on the actual payment that you pay to get the vehicle.

If Edmunds.com is to be believed, they say that buying a new car or an old one is always better than leasing one as leasing tends to be heavier on the pocket as even though you maintain the car all through, you never get the perks of selling it off at any point of time.

Apart from this, the companies who lease out cars across states follows a rule where the leaser need to buy an auto insurance which goes well beyond the state’s mandatory limits. This is a very important factor to take into consideration before you spend on auto insurance to be precise. However, if a person finances their own vehicle, they tend to get a fair amount or comprehensive and collision coverage.

In case you are still weighing the idea of leasing a car, chances are that you might have to buy or invest on the ‘gap’ insurance which is purchased to cover the time span gap between when you own a car and what the insurer will pay for you totalled in an accident or damage situation.

• Car Insurance Basic Buying Rules

Discussed below are all the rules and points that you should be fully aware of before you venture out to buy your first set of wheels:

• There’s more to it than only liability coverage

Even though your state might just require you to get an insurance which covers liabilities, don’t just be content with it unless and until what you are buying is an old item and it doesn’t cost much!

• Think of spending underinsured and uninsured motorist coverage

These coverage policies talk about protecting against accidents even when you or the driver of the car doesn’t have enough car insurance or doesn’t have one. You might need to pay a bit extra for this but it’s worthy if not more.

• Look around for options before you choose the right one

Before you go about buying auto insurance, it is advisable for you to get rate quotations from as many insurance companies and then compare them in all respects. This is more important as the insurers have varied ways to determine what you are going to pay for the coverage and kind of insurance you want.

• Beware of the vehicles with rebuilt or salvage titles

It is extremely difficult to get insurance for a car with either a salvage or rebuilt title due to the fact that the rebuilt ones are first totalled and then repaired and the salvage ones are totalled. Where some insurance companies will issue you a policy for these, some would not-whereas some will but at a pocket burning price tag.