Key terms for auto insurance beginners

June 24th, 2015 by admin

Before you get too excited to take off on a road trip this summer in your new (or new-to-you) car, take the time to learn about insurance for cars and the protection you need. If you're driving a car registered to your parent(s), you're probably covered under their policy. But once you've become a registered owner of a vehicle, you need to buy your own insurance. Owning auto insurance protects you financially in the event of an accident and also keeps you in compliance with the law – in most regions, you need to buy a certain minimum amount of coverage in order to legally operate a vehicle.

Important terms

Before you begin the search for an insurance company and policy that's right for you, you should at least have a basic understanding of the different types of coverage available (some optional, some required).

  • Liability insurance will cover the cost of damage repair for others' vehicles if you cause an accident. Most regions require this coverage.
  • Collision and comprehensive insurance covers your vehicle's damage repair or reimburses you for the market value of the car if it's totaled. Comprehensive coverage will pay out if your vehicle is stolen or damaged in an event other than a traffic accident such as a natural disaster, vandalism or if you collide with an animal while driving.
  • Rental reimbursement coverage pays for a rental car if the vehicle you own is undergoing repair in a certified shop due to a claim.
  • Extras are usually available, like roadside assistance.

If you leased or financed your vehicle, the lender or leasing company will most likely require you to purchase collision and comprehensive insurance. If they don't make you buy this coverage, you still should or else you'll have to pay for everything out-of-pocket after an accident.

Make sure you're protected with the best car insurance in Quispamsis and its surrounding regions. Contact Fundy Mutual today for an affordable car insurance quote.