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Introduction: Getting a new ride can be an exciting step, but it’s also smart to ensure you have the right auto insurance policy. It’s easy to feel overwhelmed with all the insurance auto options. This essay will walk you through how to make sure you have the right insurance coverage for your new car by explaining the details behind liability coverage, collision coverage, comprehensive coverage, deductibles and extra coverage options; so, you can make an educated choice yourself. Liability Coverage Liability coverage is one of the fundamental building blocks of the auto insurance policy. It provides coverage for financial loss when the insured is found responsible for property damage, or bodily injury resulting from car ownership. You’ll find that every state mandates its own minimums for liability coverage. However, the minimum is just that - the minimum. Consider the value of your personal belongings and the risk associated; that is, your driving habits, the area your vehicle is parked, and the population to decide how much coverage you need. Collision Coverage Liability takes care of the other party if you have any fault in an accident. But both parties are waiting for your car insurance company to provide coverage for your vehicle. And it’s under collision coverage that your vehicle becomes protected. Collision takes care of your vehicle when you collide it with another car or hit a stationary object. How you should decide whether to buy collision coverage or not? The cost of repairs and replacement; say if you hitting a pedestrian, then your collision coverage won’t apply. It’s not considered collision if you hit a deer or any other animal on road. Comprehensive Coverage Comprehensive coverage protects your vehicle against damages of anything but collision. The damages can occur due to theft, fire, flood, vandalism, rocks hurtling at your windshield and so forth. It’s not a mandatory insurance policy, yet this coverage is often suggested if you own a new car. Before purchasing comprehensive coverage for your vehicle, consider the amount of deductible and premiums you are about to pay. Deductibles Deductibles refer to the amount of money you are liable to pay out of your pocket, before your insurance coverage takes over and takes responsibility to pay the claim. Furthermore, decision as in how much should be deductible depends on the financial status and the risk tolerance you have. In simple words, the higher deductible does lower premium but increases your out of pocket expenses if you file the claim. However, lower deductible pays higher premiums but less burden when filing claim. The balance will result in the right choice of deductible that’s in accordance with your financial situation and how much you are prepared to risk. Extra Coverage Options The insurance providers have come up with extra coverage options. Coverage like emergency roadside assistance, rental car coverage or gap insurance is not included in the basic policy. You can make a decision based on what you think your needs are. To decide, consider if the advantages of these extra coverage and the cost they are being offered at. Conclusion: Since purchasing a new car is a big investment, it’s a wise decision to make and how to get auto insurance. It can also be little difficult. In this guide to new car shopping, we will walk you through the right and necessary steps. Coverage options and how much insurance do I need are big questions to answer. You need protection and you also need it to be affordable. So, it comes down to what you want protection from. It’s always advisable to get at least more than the minimum insurance. Coverage for five times the state’s minimum might be sufficient for an older vehicle.
