Car Insurance Basics for New Drivers

You’ve just earned your license, and you’re ready to hit the road. Before you take your new car out of the driveway, make sure you have the appropriate insurance for it. Automobile insurance is an invaluable asset for motorists to have in the event of an accident. The coverage can help pay for most costs associated with the accident from injuries to vehicle damages and more. Let’s look at some of the more important parts of auto insurance.

Types of Automobile Insurance

There are many subcategories of auto insurance. Depending on the provider, different coverages are included in the base package. You can ask to include additional options on your policy if something you want to be covered is not already included in their base package. Here are some of the fundamental coverages included in those basic offerings:

  • Bodily Injury and Property Damage Liability Coverage – Liability insurance covers you for the costs of the other person involved in the accident. This includes their property repairs/replacement and injury costs.
  • Personal Injury Coverage Covers the price of your own and your passengers’ injuries incurred in the accident.
  • Collision Coverage – Covers the costs of repairs needed on your own vehicle as a result of the accident.
  • Comprehensive Coverage – For damages to your vehicle that does not have to do with a collision. Typical causes covered include fire, flooding, theft and more.
  • Uninsured/Underinsured Motorist Coverage – Provides you money for your own injuries and auto repairs if you are hit by a motorist who does not have a liability insurance policy.

Difference Between a Deductible and a Premium

A deductible is the amount of money that you must pay out of pocket before the insurance company pays off the rest. For example, if you have a policy with a $600 deductible and the costs of your accident total $1,000. The insurance company is only responsible for $400 since you own the burden of the first $600. The premium is the amount you pay for your car insurance monthly. Often times, increasing your deductible will lower your monthly premium and vice versa. For additional topics that could impact your premium, see this blog.

Look for Insurance Discounts

You’d be surprised how many ways there are to reduce your auto insurance rates. Most insurers offer premium discounts for a variety of reasons. Having a safe driving record, graduating from a motor safety course, and even sometimes getting good grades in school could all lower your monthly premium. Talk to your insurance company about ways you could save.

There’s a lot that goes into choosing the right insurance policy. Do the research to find the best option for you. If you need any help, our professionals at the TJ Woods Insurance Agency are here to help walk you through it all. You can utilize our informative blogs such as Adding Teen Drivers to Auto Insurance in our Learning Library or contact us with any questions you have. We’ll help clarify your options and offer a free quote today.