There are several different types of car insurance, and each type of policy has specific features. The basic coverage level is liability coverage, which is required in most states. This coverage will not pay for your own car, but it can help protect you in case of other kinds of loss, such as an accident or theft. Some states also require additional coverage, such as medical payments or personal injury protection. Others may require coverage for uninsured drivers.
Some states, such as California, require car insurance policies to cover damage to other people and their property. Some states require that all drivers have certain minimum amounts of coverage, but others may allow you to choose higher limits if you feel you need more coverage. While auto liability coverage is required in 49 states, you may also want to consider collision and comprehensive coverage. These types of coverages protect you in the event of an accident and can protect you in lawsuits.
You may be wondering why you need car insurance if you are a safe driver. Even the most careful driver is at risk of damage to their car, such as being hit by another vehicle. If you drive a vehicle that has not had an accident in the past two years, auto insurance can be the best way to ensure your car is legally protected and protect you against financial loss in the future.
Many insurers offer discounts for certain safety features on your car. If your car is fitted with front airbags and seat belts, you may be eligible for an extra 5% to 10% discount on your premium. Passive restraint equipment has been standard in new cars since 1983. This type of protection will also qualify you for a discount on medical payments coverage or personal injury protection.
It is important to choose a policy that is right for you. Liability coverage is mandatory in most states, but collision coverage is recommended to cover the cost of car repairs in case of an accident. Comprehensive coverage protects you from other risks, such as theft or vandalism. You can choose higher limits to protect yourself against higher costs in case of an accident.
There are also discounts that apply to older drivers. These discounts can include a low mileage usage discount, which saves you money on premiums if you don’t use your car a lot. If you drive less than seven thousand miles a year, your premiums can be reduced by about 25%. If you’re a mature driver, consider taking a driver improvement course. This course covers similar ground as the defensive driving course, and can help you brush up on the skills and techniques required to avoid accidents.
You can also take advantage of loyalty rewards programs that reward loyal customers. However, you should keep in mind that these programs can be limited to one or two insurance companies. It is important to shop around for the best rates. If you stay loyal to one company for five years or more, you can receive an additional 20% discount on your collision and liability coverage premiums.