There are a lot of things to think about when buying a car. Aside from the fun things like picking out your favorite model and the amenities it will come with, you also can’t forget about the other stuff, like insurance.
If you’re not sure what type of insurance you will need for your new vehicle, our Mazda finance specialists are here to go over the basics.
Car Insurance 101
While there are so many different kinds of car insurance, there are primarily four types you’ll want to consider when you purchase your next car.
Liability Insurance
Liability insurance is the most important type of insurance you will need. This is because it’s required by law, and if you don’t have it, you could face serious legal consequences. In general, liability insurance covers you in the event that you cause an accident on the road.
Collision Insurance
If you get in a crash and you only have liability insurance, you will have to pay for any repairs to your car out of pocket. With a collision policy, however, any repair costs may be mostly or completely covered.
Comprehensive Insurance
Sometimes bad things happen to cars even if they’re not being driven. For example, if a tree falls on your car during a bad storm, neither liability nor collision insurance would help. However, comprehensive insurance would cover the repairs.
Uninsured/Underinsured Coverage
What happens if an uninsured driver causes a crash? You’d be out of luck, unless you have uninsured/underinsured coverage, that is. This will help cover repairs and medical expenses even if the other person can’t.
Still not sure which type of car insurance you should get? Get in touch with Champion Mazda. We’ll give you the information you need and help you make the decision possible.
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