Understanding auto insurance

If you or someone you know is a new driver, you may be looking for the best car insurance quotes Sacramento has to offer. We all know that when we start driving, insurance is just something we have to get, but we don’t often stop to think about why that is. Here is some information that might help gain a better understanding of car insurance.

What Does It Cover?

This depends on the coverage you purchase. If you have an auto loan, most dealers expect you to pay for full coverage on a vehicle until loan payment has been completed. However, if you bought your vehicle from a private party or have already paid off your auto loan, you are able to choose the extent of your coverage. The following scenarios are the minimum amount of coverage required for drivers in the state of California: if someone else is injured in an accident you caused, if you damaged property in an accident you caused, if you are injured by an uninsured driver during an accident or if your property is damaged by an uninsured driver.

Who Needs It?

In the state of California, every person who owns or drives a vehicle is expected to have auto insurance.

Is It Worth It?

Absolutely! If you are in an accident and are uninsured, there is a possibility you could be looking at thousands of dollars in fines. In addition to these fines, you may get sued by the other person who was involved in the accident. You would have to pay to repair or replace your vehicle out of your own pocket. Considering all these costs, it is much cheaper to pay the annual premium for insurance coverage.

If we really think about it, insurance is definitely a worth-while expense. Accidents do happen, and when they do, you can feel a sense of relief knowing that your insurance company is on your side.

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