Buying a car is an exciting event. After all, it’s one of the largest financial decisions you will ever make. But what about if something goes wrong? In this blog post, we will explore the different types of car insurance and whether or not you need it to register your new car. From theft coverage to accident protection, read on to learn everything you need to know before making your purchase.
What is Covered by Car Insurance
When you register a car, the ownership transfer is recorded in a public registry. This means that if something bad happens to your car and you can’t use it, the insurance company may be able to get it repaired or replaced.
The following are some of the things that are typically covered under car insurance:
Medical payments: If someone is injured in your car, the insurance company may cover medical payments up to a certain limit.
Loss of use: If your car is damaged or destroyed and you can’t use it, the insurance company may cover your transportation costs while you wait for a new one to arrive.
Personal property damage: If someone damages something inside your car, like your purse or phone, the insurance company may cover the cost of replacing it.
In general, most policies will have provisions for at least some of these events. It’s important to read the fine print and make sure that you’re covered for everything that could happen.
Types of coverage
There are a few different types of coverage you can get when registering a car, and each comes with its own set of benefits and drawbacks. Below, we’ll go over the most popular types of coverage and discuss what they offer.
Uninsured Motorist Coverage: Uninsured Motorist Coverage pays for damages that you or your car suffer as a result of being hit by an uninsured driver. This type of coverage is typically the cheapest option available, but it doesn’t come with any other benefits.
Collision Coverage: Collision Coverage provides financial protection if your car is damaged in an accident with another vehicle. This type of coverage usually comes with other benefits, such as roadside assistance and rental car reimbursement.
Liability Coverage: Liability Insurance covers you if someone else is held responsible for causing bodily injury or property damage in an accident caused by you. This type of coverage is important if you’re worried about being sued after an accident.
Property Damage Coverage: Property Damage Coverage pays for damages to things like your car, home, or possessions that are damaged in an accident. This type of coverage is often more expensive than collision or liability insurance, but it can provide extra peace of mind if something happens in an accident that you weren’t expecting.
What to do if you have a wreck
If you have a wreck, make sure to call your insurance company right away. Car insurance can help cover the cost of repairs or a new car. You may also be covered for lost wages if you are unable to work due to the wreck.
Depending on your state, you may or may not need car insurance to register a car. Generally speaking, if the car is owned by you and you are the only driver, then you don’t need car insurance. If the car is being leased or leased through an entity (like a corporate office), then typically you will need some sort of liability insurance in case something happens because of the use of the vehicle. Always consult with your insurer BEFORE registering a vehicle to find out exactly what they require.