When you buy a car, one of these first actions you’ll have to take is to buy auto insurance. In fact, it may even be advisable to check out what the insurance will cost prior to purchasing a vehicle. The premiums may influence your decision!

It may interest you to know that every state requires its drivers to buy a minimum amount of liability insurance. It’s usually $10,000 to $20,000 as minimum limits for bodily injury and property damage liability. You can (and it’s probably even advisable) purchase more but you have to buy the minimums.

Main Auto Insurance Coverages

There are several types of auto coverages. The main ones are bodily injury and property damage liability, collision and comprehensive (other than collision) coverage.

• Auto liability coverage means that if by your actions, you’re found to be responsible for the bodily injury or the property damage to another, your liability insurance will pay out up to the limits.

• Collision coverage pays to repair or even replace your automobile if it’s damaged in an accident or collision with another vehicle.

(Note: You might think that the other driver’s liability coverage will pay for that. However, what if your car is damaged in a hit and run accident and the other driver cannot be located? In that case, your insurance wouldn’t pay to repair your car if you didn’t purchase collision insurance.)

• Comprehensive (Other than Collision) coverage means that your vehicle is insured and the insurance will pay out up to the limits on any damage to your car caused by something other than collision. This could be theft, vandalism, fire, hail damage, etc.

Liability coverages will make up the majority of your premium.

Other Auto Insurance Coverages

However, there are other coverages to consider when getting that auto quote:

• Uninsured Motorists will cover your losses if you’re involved in an accident with a motorist who’s uninsured or under insured.

• Medical Payments is also called Personal Injury Protection (PIP) coverage (it may be mandatory in some states). This means that medical payments including funeral expenses will be made up to the limits (such as $10,000 for each person) on the policy.

• Rental Reimbursement Coverage pays the cost of a rental car in the event your car is inoperable after an accident. For example, this might be stated that the insurance will pay up to $30 per day for a maximum of 30 days for a rental car.

• Towing and Roadside Assistance pays out for towing if your car breaks down. It usually also covers minor repairs or assistance at the scene (such a jump starting a car or refueling).

When you’re obtaining an automobile insurance quote keep in mind that each of these coverages have their own separate premium charge. The sum of them will be the total premium of your policy (minus any discounts).