Auto Insurance for New Cars
Buying a brand-new car and driving it off the lot is a very good feeling. Since this is such an expensive purchase, you're going to want to make sure that your insurance package covers not only your basic liability needs, but also provides coverage for personal injury (to yourself or to any passengers in your vehicle), collision damage, or any other unforeseen situations.
Liability insurance is required in every state, although the minimum amount of coverage required varies. In most cases, you will need more liability coverage than the minimum state level, because accidents often cost more than the minimum coverage affords. If you get into an accident, and are found legally responsible for bills that cost more than your insurance covers, you will have to pay the remainder of the damages out of your own pocket. To insure against this, take out liability coverage at a higher level than your state's minimum.
The Insurance Information Institute (http://www.iii.org/) recommends a minimum liability coverage for new vehicles of $100,000 in bodily injury protection per person and $300,000 per accident.
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Auto Insurance Options to Consider for a New Car
In addition to liability, consider purchasing collision and comprehensive coverage for your new vehicle. Collision insurance pays for damage to the body of your car caused by accidents. You don't decide how much to buy—the coverage your insurer offers will reflect the market value of your car, and the cost of repairing it.
Comprehensive coverage works in many of the same ways as collision (the two often come as a pair), the main difference being, while collision coverage specifically covers damage caused in an accident, comprehensive covers all damages not caused by an accident: vandalism, fire, flood damage, theft, and other causes.
You should also decide on a deductible, which is the amount of money you pay on a claim before your insurance carrier reimburses you. In general, deductibles are either $500 or $1000. Keep in mind that the higher your deductible is, the lower your premium will be.
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**Auto Insurance Finder is not an insurance broker or carrier. Content on this site is for comparison and informational purposes only. The products and services listed on this site may not be available in all states.
Last Updated: February 14, 2008
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