If you’re a first-time driver in St. Louis, buying car insurance can seem confusing. There are so many different options and so much unfamiliar lingo that you probably have a lot of questions. What’s the difference between comprehensive and collision coverage? What deductible makes the most sense financially? What in the world is liability insurance? Don’t worry, with a little knowledge you’ll have a much better understanding of Auto Insurance in St. Louis MO. Here’s a quick and easy guide to some of the unfamiliar terminologies you’ll encounter when you’re buying car insurance.
Property Damage and Bodily Injury Liability Insurance
Property damage liability and bodily injury liability are insurance requirements for drivers in all states. These parts of your policy cover damage to the other driver’s vehicle in the event of an accident, as well as any medical expenses if they are harmed. In Missouri, the minimum amount of damage your policy will need to cover is $10,000 in property damage and $25,000 in bodily injury liability. However, you may want to choose a policy that covers larger amounts of damage to protect yourself financially.
Collision Insurance
Collision insurance protects your vehicle in the event of an accident. Coverage can vary depending on how much your car is worth. If you have an older car that’s not worth much, it sometimes makes sense to skip the collision coverage altogether when you purchase insurance. However, if you have a car loan your financial lender may require that you have it, regardless of the value of your vehicle.
Comprehensive Insurance
Even if you’re not involved in an accident, it’s possible for your car to be damaged in other ways. That’s where comprehensive insurance comes in. This part of your policy will protect you against theft, vandalism and weather-related damages. Again, if your car isn’t very valuable you may want to skip comprehensive coverage. Talk to your insurer and financial lender to be sure.
Deductibles
In the event of an accident, your deductible is the amount of money you’ll be responsible for paying out-of-pocket before your insurance kicks in. Generally speaking, the higher your deductible is, the lower your yearly insurance premium will be. Deductibles usually range between $250 and $1000.
