Shopping for a brand new car? It’s an exciting time but there’s a lot you’ll need to get familiar with.

Most states across the country have laws in place that stipulate that you need to have a car insurance plan in place before you can drive a car off the lot.

Not all car insurance plans are created equal, of course. if you’re hoping to secure the best plan for you, you’ll want to get familiar with the different types of car insurance that are out there.

Need more information on what’s what? Read on and we’ll walk you through the basics of modern car insurance.

Liability Coverage

If there’s one form of car insurance you’re going to need to have in most states, it’s liability coverage. This is a mandatory requirement just about anywhere, so you’ll want to ensure you’re in the know about what it does.

Liability coverage helps to pay for costs related to an accident that the driver causes. A driver who causes an accident will find that their liability coverage will cover both the costs of another person’s injuries as well as the property damage sustained in the accident.

That damage will likely be to another person’s vehicle, but it could be their belongings in the vehicle or even public property off the side of a roadway.

States laws set minimum requirements for coverage that drivers must adhere to. For example, New York requires $250,000 per person and $500,000 per accident.

These minimums are different from location to location, so you’ll need to do some research to determine how much it is you’ll need to have in place.

Uninsured Driver Coverage

Even though laws stipulate that all drivers must have some coverage in place, the roadways are still full of uninsured drivers. These are people whose coverage has lapsed and who should not be driving.

If you get into an accident with one of these drivers, they will likely not have the money in place to manage the damage the accident has caused. With no insurance, you’ll be left high and dry without some backup plan.

That plan? Uninsured motorist insurance will do the trick. This kind of insurance will cover your injuries and medical bills should you get into an accident with someone who can’t.

In some states, this form of insurance will also cover property damage. In some states, this form of insurance is also required but is optional in most places. Still, you’ll want to view it as an important part of vehicle ownership.

Comprehensive Coverage

What about damage to your vehicle that might arise from other sources besides an accident? Maybe severe damage is done due to weather conditions, or perhaps vandalism or theft.

If you have comprehensive coverage in place, you’ll be covered in the event of these occurrences. That can give you a great amount of peace of mind. If you shop around for this kind of insurance you can save on rates.

Types of Car Insurance

If you’re looking to purchase a vehicle, you’ll need to get familiar with the types of car insurance first and foremost. The above information can help. Driving with the proper insurance in place will ensure you’re seen as a smart driver.

Need more auto information and advice? Keep scrolling our blog for more.

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