First Time Buying Auto Insurance? Auto Insurance Components to Understand

If you are a first-time car owner, one of the things that you will need to take care of as soon as possible is getting auto insurance for your new vehicle. However, what you may not know is that there are many different types of auto insurance as well as various components of auto insurance that fall under a single policy. To be sure you get the best policy possible for your new vehicle, get to know more about some of the auto insurance components that you should be aware of. Then, you will be better able to find an automobile insurance company to meet your insurance needs. 

Liability Insurance

Liability insurance is one of the main auto insurance components that you will need to know about. The majority of states require liability insurance for any vehicle you own and drive. This type of insurance involves incidents when you may be responsible (liable) for the accident. 

When you caused an accident, you will be liable for two types of costs. One would be the damage to the other person's vehicle, and the other is personal injuries another person might sustain.

If you have good liability insurance, you will not have to pay out of pocket for much of the personal and property damage you cause in an accident. You would just pay the deductible and then your insurance company would take care of the rest up to your covered amount. Because of this, you need to think long and hard about how much liability coverage you want to carry. You do not want to carry too little and then experience a major accident that could cost you thousands. 

Collision Coverage

Collision coverage is one of the optional types of auto insurance that you may want to consider. This insurance component can cover accidents with another vehicle as well as accidents in which you collide with other objects, like a light pole or a fence. Your collision insurance would cover the cost of replacing your vehicle or repairing it up to the value of your car. Your deductible would need to be met first, of course.

Comprehensive Coverage

Comprehensive auto insurance coverage helps to insure your vehicle in case of other types of damage. For example, natural disasters, vandalism, and theft (among other things) can all damage your vehicle. However, this type of damage is not covered under collision insurance. 

The idea is to fill in the gaps of your other auto insurance coverage so that you are not responsible for the full cost of such damages. If you are leasing a car or still owe money on an auto loan, these companies may require that you carry this coverage. If you own your vehicle outright, this coverage is generally optional. 

When you know more about these types of insurance coverage, you can be sure that you choose a policy with the right kind of coverage for your new car. Go to sites like http://www.unitedsecurityagency.com for more information.