Car insurance is a must if you’re planning on driving down the road anytime soon, so shopping around for policies definitely needs to be on your list of things to do. Yet, it can be hard to make the right decisions about car insurance policies without understanding some of the basics. Here’s a list of frequently asked questions about car insurance to help you get started.
What Is Car Insurance?
Car insurance helps protect you, your passengers and your vehicle if you’re involved in an accident. The policyholder pays a monthly premium to their insurance company, and the insurance company pays out benefits to cover physical and medical damages if needed.
What Types of Car Insurance Are There?
There are a number of options when it comes to getting car insurance
What’s a Deductible?
The deductible is the amount that your insurance company requires you to pay in case of an accident claim before they begin paying any benefits. A higher deductible will usually lower your monthly premiums, while a lower deductible often increases car insurance quotes.
How Much Coverage Do I Need?
Insurance needs will vary from person to person, depending on their circumstances. For example, someone who is retired or works from home isn’t exposed to the same level of risk that someone who commutes to work daily will be. Often, families with children will choose a comprehensive policy for a bit more protection, while a younger college-age student frequently goes with liability in order to save the most. The most important thing to remember is to find the right balance of cost and coverage that’s best for you.