If you are a young driver – in your teens or just out of them, and if you recently purchased a new or most likely used car, you might be strapped for cash a bit. You have probably been saving for a long time, and you have just made the biggest financial investment that you ever made. The amount of time you have spent searching for info on the best car that you can get and looking for good deals online certainly payed out when you got the chance to drive the best car that you could get, but there’s another auto related purchase ahead of you, and it can certainly be expensive. All those hours spent researching and those savings you were thrilled to be able to get when buying the car can go to waste if you rush through choosing the right insurance for your first car, so make sure you take your time and familiarize yourself with all the options available to you when it comes to your first auto insurance policy.
At this point, you are probably wandering why you need auto insurance in the first place. Well, one answer is – you don’t really have a choice. It’s mandatory, as in “you have to do it or you’ll get fined” in most states in the US, and even if it weren’t, it’s still a very bad idea to drive around without any. For one thing, if you get stopped by traffic police, they will ask to see your drivers license, registration and proof of insurance. If you can’t produce the proof that your car is insured, they will give you a hefty fine. This makes sense when you think about it – the state is simply making sure that every driver participating in the traffic on public roads has a guarantee that some level of damage he or she may cause if there’s ever an accident can be payed for, and that’s exactly what mandatory liability insurance means. Most new drivers, over 50% to be exact will be a participant in a traffic accident in the first year of their drivers career. Sure, some of those accidents are just little fender benders, but a lot of result in serious damage and even injuries. If you do happen to be involved in an accident, regardless of whether you caused it or not, you will have to present proof of auto insurance, and the same goes for the other driver. The one that is found to have caused the accident will have to cover all auto repair expenses and medical bills for the other person or persons, and not having liability insurance will mean that you will have to pay for it out of your own pocket, if it’s decided that the accident was your fault. The price of auto repairs and especially medical bills can be several times higher than the value of your car, so in effect having liability insurance covers you as much as everyone else who shares the road with you.