Let’s face it, the ability to drive is basically the master key to one’s freedom. Once a person has a car, the world opens itself up to them. A person can start to work, start to travel, and finally start living life on their own, without a chaperone / chauffeur. One of the only downsides to having the ability to drive is that a person will finally start to have to accept responsibility and pay their own bills. One of the most important things a person needs once they are able to drive is car insurance. Actually, car insurance is mandatory according to the law.
How does a person decide what kind of car insurance to get? Well, there are multiple types of coverage, and depending on the age of the vehicle / if money is owed on it, the answer may differ. If a person is financing a vehicle, or it is new enough that the replacement value is pretty high, it is recommended that a person carry both collision and comprehensive insurance. Collision insurance covers a person in the event of a crash, paying for the car to be fixed, minus a deductible chosen by the insured party. Collision coverage is very important, because it covers all damage done to the owner’s vehicle. Comprehensive coverage is more of a catch-all for other incidents. Fire / storm damage / theft / etc are all covered by comprehensive insurance. There are also other options a person can add to an insurance package, such as rental car reimbursement and towing coverage in the event of a breakdown, and all of the options increase the premiums slightly, but if they are ever needed, they are definitely worth it.
Regardless of the age of the car, or if money is owed on it, liability insurance is required. Anybody who drives on a public road is required to have liability insurance. Liability insurance covers damage, both property and medical, done to other people as a result of the insured driver. Liability basically covers anything that happens to anyone else other than the insured driver. It is important to have, because without it, if a person is injured or their car is damaged, the responsible party can be sued for damages and medical bills can add up fast. Liability insurance will not help a person get their own car fixed, or take care of their own medical bills, but it is necessary to ensure that other drivers are not negatively impacted due to the mistakes of the insured driver. Why should someone else have to pay for one person’s mistake?
