If you are new to owning a vehicle or are going to be purchasing a new vehicle, it is good to know the basics of auto insurance. Since having some type of auto insurance is required, why not know what you are paying for? Keep reading below to learn some helpful tips about choosing your auto insurance and also to learn some basic terms and their meanings!
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Things to Think About When It Comes to Auto Insurance
Consider which type of coverage you will be needing for your vehicle. There are many different types of coverages to choose from, the type that you choose might depend on the type of vehicle that you plan on insuring.- The type of vehicle that you are insuring will affect the insurance rates that you will receive. You can expect your rates to be higher if you are insuring a new luxury vehicle.
- You may get very different rates from each insurance agency. Be sure to take the time and compare the rates and coverages of different companies.
- Are you eligible for any discounts? Ask your insurance agent and find out, it could save you a lot of money.
- Do not let your coverage lapse. If you were to try and purchase another auto insurance plan after you let your previous one lapse, there is a chance that your rates will increase. Insurance companies see drivers that do not have insurance (doesn’t matter for how long or short of period) as a risk.
Auto Insurance Terms to Know
- Deductible – This is the amount that you will pay out of pocket towards any damages before your insurance coverage kicks in.
- Liability Coverage – This is the minimum requirement of auto insurance that you need to have on your vehicle. It covers the damages and injuries that occur to the other party and their vehicle but nothing of your own.
- Collision Coverage – This covers the damages that are made to your vehicle no matter who is at fault.
- Comprehensive Coverage – Covers damages such as vandalism, falling objects, fire damage or costs that were not caused by a collision with another vehicle.
- Full Coverage – Although there is not a set full coverage plan, it usually consists of a combination of different coverages such as liability, comprehensive, collision and some type of medical coverage.
- Gap Insurance – This pays the amount of money that is between what you owe on the car and what the car is actually worth if it were to get totaled.
- Declarations Page – This is a summary of the auto insurance coverage that you have.
Toyota of Hattiesburg offers a wide selection of new and pre-owned vehicles. If you are looking for your next vehicle, stop by our dealership today and a member of our team will be happy to set you on the right track. Contact us with any questions!