Purchasing your first car is a significant milestone, but it’s also important to understand the essentials of car insurance to keep you protected from the start. Let’s explore what you need to know before buying your first car.
Is car insurance required?
One of the first questions first-time car buyers have is whether they are required to have car insurance. The short answer is yes. Nearly all states require you to carry at least a minimum level of coverage to drive your car on public roads legally. New Hampshire and Virginia are the only states that do not mandate car insurance. However, in these states, the uninsured would still be held liable for any property damage or bodily injury they cause.
What are the different types of car insurance coverage?
When looking for car insurance, knowing the different types of coverage is important. Here is a breakdown of the most common types:
- Liability insurance covers the cost of damage or injuries you cause to others in an accident. It does not compensate you or your passengers in the case of an accident.
- Collision coverage is not state-required, but most lenders and leasing offices require it as part of the agreement. It helps cover repairs to your vehicle if you are involved in an accident, regardless of who is at fault.
- Comprehensive coverage protects you from paying for damage to your car caused by events other than collisions, such as theft, vandalism, fire, or natural disaster. It is also not state-required, but most lenders and leasing offices require it as part of the agreement.
- Uninsured and underinsured motorist coverage protects you if you’re in an accident with a driver who doesn’t have enough insurance or any at all.
- Personal Injury Protection (PIP) covers lost wages and medical expenses if you or your passengers are injured in an accident, regardless of who is at fault.
When do you need to buy car insurance for the first time?
It is essential that you have insurance in place before you drive off the lot. Contacting your insurance company a couple of days before your scheduled pick-up is a good idea. Talking to a professional ensures that you have all the necessary paperwork and will not be delayed in getting your car.
Let’s talk
As a first-time car buyer, you’re stepping into a world of new responsibilities, and one of the most important is choosing the right car insurance. Contact one of our experienced Avery Hall agents for a free consultation at 410-742-5111.