Car Insurance 101

When it comes to owning a car, the law won't allow you to drive without some level of protection. In America, there are only two states in which car insurance is not mandatory: Virginia and New Hampshire. This means you'll need to purchase car insurance if you live in any of the other forty-eight states. This process can be tricky, so we answered several frequently asked car insurance questions. Keep reading to better understand the ins and outs of car insurance. 

Why is car insurance required? 

When we operate a large motor vehicle, we're putting ourselves, those around us, and our cars in a potentially dangerous situation. Driving mistakes that seem inconsequential, like running an occasional red light, can be catastrophic. 

Let's say you cause an accident and damage another driver's vehicle. Paying for car insurance allows this person to be compensated. When you take on the responsibility of driving, you must also take responsibility for the consequences of your on-road mistakes. This is why, to register a vehicle in 48/50 states, the law requires you to purchase the minimum liability coverage offered in your state. 

This minimum amount will differ by state, so double-check with your DMV if you want to be cautious about what you spend. Liability insurance has two components: bodily injury and property damage. Bodily injury coverage covers cost if a driver causes harm to another person, and property damage comes into play when a driver harms someone's car, fence, or other property. 

How much does car insurance cost? 

Car insurance is a crucial part of driving; this high value sometimes comes with a high price. Car insurance will be more or less expensive depending on your driving history. Are you known for making silly mistakes that lead to fender benders? Don't be surprised when your monthly payments are higher. Those with clean driving records, on the other hand, will likely be rewarded with lower rates.

Credit scores also have an impact, so it may be worth improving yours before buying car insurance. Even location can increase your rates–a busy, high-traffic area probably sees more accidents than a quiet suburb. If money concerns you, try browsing multiple companies to find the best bang for your buck. 

What car insurance add-ons can I purchase?

The minimum coverage level is legally required, but especially cautious drivers may seek a wider protection net. Beyond bodily injury and property damage, optional insurance options can make your life easier. 

Roadside assistance coverage

There's no way to know when misfortune will strike, leaving you and your passengers stranded on the side of a highway. When a tire pops or your vehicle needs towing, having access to roadside assistance will help you get safely from point A to point B. When you purchase roadside assistance coverage, services like towing and jumpstarts will be partially or entirely paid for by insurance. 

Gap insurance 

When a severe collision occurs, not all problems are fixable. Totaled cars tend to trigger a domino effect of inconvenience, but gap insurance eases the pain just a little. When a vehicle is destroyed or stolen before the loan is paid off, gap coverage helps cover these expenses. 

New car replacement insurance

This add-on is excellent for those who grow attached to their cars. It helps you obtain a new vehicle in the same make and model if your car is totaled in an accident. 

Where can I purchase car insurance? 

If you've watched cable television in the last ten years, you've definitely seen your fair share of car insurance commercials. Between Geico, Progressive, and State Farm, drivers in the U.S. have several options for insuring their vehicles. Geico is widely known for its affordable rates and easy purchase process, so it's great for drivers on a strict budget. State Farm has excellent customer service at a very affordable price, and Progressive is a little pricier but offers great property insurance bundle opportunities. 

Take off with Transwest

Has your car been letting you down lately, showing its age with frustrating slip-ups? If your vehicle no longer functions like it used to, this can become a safety issue and may be cause to buy a new one. At Transwest, we sell many durable, well-built cars and trucks. Explore our selection online or in person at a brick-and-mortar location.