Car Insurance - The Basics

 
Car insurance is required by law for all vehicles driven on public roads in most US states and Canadian provinces. American drivers must purchase car insurance directly from private car insurance companies, but some Canadian provinces and territories offer public car insurance (but others have car insurance sold by private insurance companies).

Here are a few things to consider when shopping for car insurance:

• Liability car insurance isn't an option, it's mandatory. Liability insurance is used to protect the other driver from financial loss when the loss is your fault.
  
  The minimum amount of liability auto insurance required differs from jurisdiction to jurisdiction, but be aware that skimping on liability insurance may well cost you in the long run. Minimum coverage will not cover the loss incurred by several people, especially where a legal case is presented against you. 
   
• Car insurance to cover the vehicle itself, unlike liability insurance, may be optional in your area. But it's still highly recommended unless your automobile is very old with little residual value.
  
  Not being able to recover the value of your car from your car insurance company could deliver a big hit to your bank account. 
   
• Almost all dealers, banks, and other lenders require that you purchase full coverage car insurance prior to agreeing to do business with you.
  
  Make sure that you read and completely understand any agreements that you're asked to sign and that you get copies of all completed and signed agreements. Never sign an agreement unless it is completed in full. And don't even consider buying an automobile without first getting a car insurance policy.
   
• You should shop around and compare prices and coverage options with several car insurance companies before deciding on a car insurance policy.

Article source: News Canada

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