The Basics of Car Insurance: A step by Step Guide

 Most people buy an automobile as their first major purchase, actually a new car is second only to a home as the most expensive purchase many consumers make. Many would purchase vehicles for over $28,000; it’s easy to see why one would want to protect that investment. Before we talk about coverage for the automobile itself, its important to ask this question, what do many people believe is the most important coverage?

Liability coverage pays the injuries or damages you or someone driving your car cost to other people or their property. There’re two liability coverages; bodily injury liability and property damage liability.  Every state has different laws that dictate the minimum coverage you must carry for this, some states require you to prove you have insurance before registering a motor vehicle. Other states use the honor system where you only have to provide proof that you’ve never had an accident or a violation. read more