After passing through the gauntlet that is your local Department of Motor Vehicles and emerging from the other side with a driver’s license you are probably ready to immediately hit the road and bask in the glow of your new found freedom. Well, unless you have the proper auto coverage you might want to postpone your road trip. Auto insurance exists to not only protect you and your car from damages done by other drivers, but also any damages that you might cause.
There are basically 3 main types of car insurance that you should be familiar with; liability, collision and comprehensive. Liability coverage deals with any damages that you cause on other drivers, automobiles or property. In most states in the US, drivers might be required to carry and present basic liability insurance to receive their license. Collision coverage covers damages done to you and your vehicle by other drivers. Another important thing to remember about collision insurance is that it may be able to help you replace your automobile in the event that it is totaled beyond repair. Comprehensive coverage is meant to cover and help replace / repair a vehicle in the event of fire, theft, vandalism or other events. Take the time to evaluate your specific insurance needs before choosing a policy or provider. For example, if you have a brand new car, it might be wise to invest in collision coverage in addition to liability (especially if you’re still making payments). This will allow you to recoup any losses through repair or replacement of your damaged vehicle. You don’t want to have to pay car payments on a wrecked car do you?
Keep in mind that policies for younger drivers are often higher than those for older drivers. This is because insuring younger drivers is often said to be a much higher risk on the part of the insurance company. But not to worry, drive carefully and responsibly and in several years your premiums will drop significantly. In spite of the higher rates, there are a number of companies offering affordable insurance policies for younger drivers, so be sure to do your homework before you decide upon any one company.