We admit that buying insurance for your new car isn’t quite as exciting as buying the car itself, but it just might be your most important purchase. Why? Well, first of all, it’s usually required either by your state, your lender, or both. More important, however, is the financial protection auto insurance provides.
Auto insurance coverage options.
• The type and amount of insurance everyone needs is unique. You most likely know about collision coverage, which pays for damage when you cause a collision with another vehicle or an object, and comprehensive coverage, which pays for repairs when your car is damaged by something you can’t control, like a fallen tree.
Other coverage options aren’t as well-known, but can be crucial when it comes to protecting both your car and yourself.
You should buy as much personal liability (PL) and uninsured motorist (UM) coverage as you can, because both can protect you from having to pay large out-of-pocket repair and medical bills. And once you have basic liability coverage, increasing your limits won’t cost you much more at all.
Don’t skimp on property damage (PD) coverage, either. It’s expensive to replace a new vehicle, and if you are at fault in a crash, not having enough insurance can expose you to unnecessary financial risks.