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There are many things to consider when choosing auto insurance, as factors such as driving history, age, and vehicle model can all come into play when deciding on a plan. Insurers offer a variety of car insurance policies to pick from, ensuring that a consumer can find the one that works best for them and their lifestyle.

The basics of auto insurance

Liability insurance is one thing that is almost universally required for drivers across the nation. Liability insurance doesn’t cover the cost of damages to a drivers’ own vehicle. Rather, it pays for damages they may inflict on other vehicles, property or other people in the event they cause an accident.

In order to cover damage to their own vehicles in an at-fault crash, drivers need to purchase collision coverage. However, if their own car is fairly old, drivers should consider how much their car is worth before paying for the additional coverage.

Another common car insurance policy addition is comprehensive insurance, which covers most damages that don’t result from a collision with another car. Comprehensive insurance covers theft or vandalism as well as damage caused by animals or the weather.

Other parts of most auto insurance policies are uninsured and underinsured motorist coverage. These policies can help pay for vehicle damages or medical bills drivers may accrue if their vehicle is hit by another driver who doesn’t have their own insurance, or doesn’t have enough coverage to pay for all of the damage.

Extra additions

For those either financing or leasing a car, gap insurance coverage may be helpful. Because a new car loses value as soon as it’s driven away from the dealership, if the car is totaled, there could be a difference between the amount of money left on the car loan and the amount the insurance company will pay. In that instance, gap insurance will pay for the difference. Without that coverage, drivers could be left paying the bank money for a car they no longer drive.

Motorists who frequently host guests or who are renting a car may want to look into short term insurance, which allows consumers to purchase policies that last anywhere from one day to six months.

Policies are optimal for out-of-town guests who may want to borrow an automobile, as most plans only cover the vehicle owner and their immediate family. Someone buying a new car may also want to use short term insurance to start. That can allow them to take their time comparing auto insurance quotes and see what plan best satisfies their driving needs.