Before you take your car out on the road for the first time, you need to ensure you are covered with the appropriate car insurance. Since there are a lot of coverage options out there, use this guide to help you answer common questions new drivers have about choosing a policy.

Car Insurance FAQ

Is it required?

Most state laws require a certain amount of insurance coverage for every vehicle and driver. In the state of Alabama, for example, drivers are required to have a minimum of $25,000 bodily injury per person per accident with $50,000 maximum bodily for all persons per accident, and $25,000 property damage liability. It is recommended, however, that you get additional coverage.

What coverage options are there?

There are six common coverage options people opt to get. Auto liability coverage helps pay for another driver’s expenses if you caused an accident. Uninsured and underinsured motorist coverage pays for your medical bills or vehicle repairs if you’re hit by someone who doesn’t have enough coverage.

Collision coverage pays for repairs or replacements to your own vehicle in an accident that is your fault. Comprehensive coverage pays for other damages such as theft, fire, vandalism, or storms. Medical payments coverage or personal injury protection may cover medical bills or related bills from injuries incurred during an accident.

What affects the price?

The cost of car insurance varies widely for different drivers, as the cost reflects the amount of risk your provider is taking. The newer and higher value your vehicle is, for example, raises your rates because it will cost more to repair or replace. High-risk drivers such as those who have been at-fault in accidents or drivers under the age of 25 may cost more.

Your location will also affect price; places where hailstorms are common, for example, may have higher rates for comprehensive coverage. You can talk with your provider about discount options such as taking a safe driving class, adding safety features to your vehicle, or getting good grades.

What is gap insurance?

Gap insurance covers the gap between what you owe on an existing car loan and what your insurance company pays for. Because your car depreciates over time—particularly quickly in the first few years—the value of your car may dip below what you owe on it.

In this case, if you were to total your car and your insurance reimburses you, you may still owe more on your loan. Gap insurance would cover that difference.

Aaron Insurance Agency offers insurance for young drivers in Dothan, AL. They will take the time to answer all of your questions and explain your options to you, so you can find a car insurance policy that fits your budget and needs. They use a large network of more than 15 reputable providers to find the most supportive and affordable insurance available. Get started with a quote online or by calling (334) 712-0777.