New drivers have more to think about than just keeping the gas tank full. While a new set of wheels is fun, it also comes with the responsibility of keeping the roads safe for all drivers. That’s why, in every state, it’s mandatory to purchase auto liability insurance, which covers the costs of third party injuries and property damage resulting from an accident caused by the policyholder. But there’s a lot more to auto insurance than just liability coverage.
Yes, you are street legal if all you own is liability coverage, but it doesn’t cover your own expenses if you’re injured or your car is damaged. For that, you’ll need extra coverage. The most popular coverage option is collision, which covers damages to your vehicle. Additional options include:
Comprehensive: Covers damages to your vehicle that are not the result of an accident, such as severe weather damage or theft
Medical expenses: Covers the cost of any necessary medical treatment that you incur
Uninsured/underinsured motorist: Covers the costs associated with an accident in which the at-fault driver is uninsured or underinsured
Once you decide which coverages you want to purchase, you’ll need to choose a deductible price. The deductible is the amount you’re responsible for paying when filing a claim before coverage kicks in. The higher the deductible, the lower your monthly premium. In fact, it’s recommended that you choose the highest deductible you could afford to pay at any given time. For many people, that sweet spot is $500.
Insurance companies calculate premiums based on the risk of a driver filing a claim. Those with a higher risk will pay more. So, if you maintain a clean driving record, drive a safe car and have a good credit score, your insurance rates may be quite a bit lower than a driver who displays reckless behavior.
And lastly, most insurance companies offer a variety of discounts that you’re free to inquire about with your agent. Who’s eligible for the savings? Good students, safe drivers, seniors, teachers, military personnel and more can all save money on their premiums. All you have to do is ask!
We’ll help you shop for the best policy within your budget. Call Keystone Insurance at (801) 852-5555 for more information on Provo auto insurance.