Auto insurance is the cheapest and most reliable way to protect your car, and for many, it’s the best way to get the most bang for your buck.
Auto insurance covers damage caused to your vehicle by an accident, whether you’re on the road or parked in your garage.
If you’re a driver, your deductible is usually less than $5,000.
If your car has a mechanical issue, such as cracked windshield, or a malfunctioning engine, you’re looking at much higher rates.
If auto insurance isn’t enough, you can choose a separate auto policy.
To find out what you should do next, read on.
What you need to know about auto insurance If you are a driver and your vehicle is uninsured, you’ll need to choose a car policy that covers your deductible.
A policy must cover at least half of the vehicle’s costs, including the cost of repairs.
That means you have to pay the full deductible or a percentage of your claim amount, whichever is greater.
That percentage typically comes out to about 10 percent, according to AAA.
This percentage is not guaranteed.
If the deductible is more than $10,000, you have no recourse.
If there’s a deductible that’s lower than that, you may have to settle for less than that and be out of luck.
You also can’t get a waiver to pay a lower deductible, even if you don’t qualify for it, according the National Association of Insurance Commissioners.
You may have the option to pay an extra $500 or $1000 to cover your deductible but it may not be enough.
You’ll need the approval of your insurer to do this.
A good idea for you and your car The best car insurance is based on a mix of what you have, what you’re buying and what you need, said Paul B. Bowers, a car finance expert and professor at Georgetown University’s School of Business.
“If you buy a good, reliable, new car, then you’re likely to have a lot of cash on hand to cover the deductible and the other costs,” Bowers said.
“And you should look for a policy that includes that level of coverage.”
A policy may not cover everything, but it will cover enough to protect you if your vehicle does break down or otherwise needs repairs.
If, however, you purchase a car that is less than ideal, the deductible may be higher.
You can also look at a different policy to help lower the cost.
You need to make sure your car is in good condition.
If it’s damaged or not in good shape, you will need to replace it.
“There are always going to be circumstances when you need a car you can’t buy right now,” said Bowers.
For instance, if you’re renting or renting out, you need insurance that covers repairs.
You will need a policy to cover repairs and to pay for the insurance premium.
The same goes for a new vehicle.
If someone else is taking care of the car and you are, you should consider buying the car.
If this is the case, your insurance company may ask for the extra money to cover expenses.
Insurance company can’t help you if you can only afford to pay $10 to $15 a month for your car policy, Bowers added.
You should also consider other options.
“You can look at purchasing a car leasing company or getting a car rental company to rent your car,” Bower said.
If buying a car is more of a challenge, Bower recommends buying a used car.
“A used car will cost less and will last longer, so it’s a good investment,” he said.
Another way to save money is to get a commercial driver’s license.
Some states require you to pay state and local taxes on the car you’re leasing.
This can help you avoid a state or local tax bill.