But, it still doesn’t take away the importance of covering your car with a good auto insurance plan, since you don’t know what will happen to your car later.
For instance, in the time of a big accident, you need to pay all of the fixing up costs by yourself if you don’t cover your car with a good car insurance plan. Thus, you don’t need to pay a dime just to get your car fixed when accidents happen. It is also the same with other unexpected things, such as theft, disaster, and faulty vehicle.
Here are 6 types of auto insurance coverage that first-time car owners need to know:
1. Accidents. Accidents happen at unexpected times. It can be caused by your own recklessness, or it can be caused by the recklessness of other drivers. Also, accidents can happen because of disasters, such as floods or fire. The point is that if your car is damaged because of any accidents, the auto insurance company will cover the cost of repair for your car.
2. Faulty car. Maybe, you are driving for a few miles down the road, and then in the middle of your travel, your car is faulty. The engine is in trouble and the car cannot move, or your tire is flat. This can become quite a problem for you. But fortunately, the insurance company will cover the cost of repairing your car in this emergency situation. Some companies might also offer roadside assistance for their clients.
3. Car make and model. The make and model of your car will also affect the type of car insurance that you get. If you have a brand new car, or if you purchase a luxury car, you will have a better coverage for damage. But, you need to pay more for the premium, since it might cost more money to repair the damage of your car. This is different if you buy a second-hand car with long mileage.
4. Personal fault. Sometimes, you might be driving your car, and because of your carelessness, you might cause an accident with other cars. Other cars may sustain some damages because of the accident, and other drivers may also need to be sent to the hospital. The car insurance plan usually provides the coverage cost for the car damage or medical problems caused by your personal fault.
5. Non-insured driver. The auto insurance company also offers the coverage for non-insured driver at the time when the driver causes an accident that creates damages for other cars. In this way, you don’t need to pay all the financial burdens by yourself, since the car insurance company will cover the cost for you.
6. Driver’s experience. If you are not too experienced with cars, then you might fall into the high-risk category for the car insurance company, since you will most likely to have accidents on the road. Thus, you usually need to pay more premium costs, but in exchange for that, you get better coverage for any damage. If you are already an experienced driver, you will fall into the low-risk category, and you will pay lower insurance costs since you may not file insurance claims often.