Car insurance is one of those things that you have to have if you drive a car. There are so many different car insurance companies on the market these days, such as H and M Insurance, and they each have different types of car insurance policies that can fit the needs of just about anyone. Here are three things you need to keep in mind when shopping for car insurance.
1. You might be better off getting a car insurance policy that covers more than your state requires.
Every state has its own law regarding how much liability car insurance each driver needs to carry. In order to make sure you are compliant with state law, you need to make sure you are aware of the minimum requirements and that your policy meets them.
However, you may find that you need to buy more coverage to protect you in the event that you cause an accident. For example, the minimum liability coverage for drivers in the state of New Jersey is 15/30/5. That means, if an insured driver causes an accident in New Jersey, their policy will pay up to $15,000 for medical bills for each person injured, with a maximum benefit of $30,000 for the accident. The last number means it will only pay $5,000 for property damage as a result of the accident.
So, if you cause injuries that exceed $30,000 in medical bills or cause more than $5,000 worth of property damage, you would likely be sued in court for the amount your policy doesn't pay. It just makes more sense to increase your liability insurance beyond the minimum to cover yourself in case you cause a massive accident.
2. You can save money by bundling insurance policies.
If you think your car insurance premium is too high, you can save money by bundling your car insurance policy with another insurance policy. For instance, if you already have homeowner's insurance, you can likely save money on car insurance if you get your policy through the same company. The amount of savings you get will vary, but you could see savings up to 30% by bundling your car insurance and home insurance together.
3. You will need to know the insurance requirements of your car loan lender.
Whenever you have your car financed, you not only have to know the minimum car insurance requirements for your state, but you also need to know the car insurance requirements for your lender.
Usually, car loan lenders require you to carry full coverage insurance. This means your car is covered against damage in most situations. It doesn't matter if you are in an accident or if someone damages your car when it is parked--your insurance policy will cover the cost to fix your car.
Full coverage car insurance protects you and it protects the lender who financed your car. That way, if something happens and your car is totaled, you don't have to worry about paying for a car you no longer have and the lender doesn't have to worry about not getting their money back from the car.