When buying a new or used car, you will need to purchase car insurance in order to drive the car off the lot. If you are buying a car from a private seller, you will need to have the car insured a days after purchase. But buying car insurance can be more complicated than you think. If you have never purchased car insurance before, your first step will be to contact a few insurance companies or visit their web sites to find out more about the types of coverage they can offer you.

The amount of money you will have to pay per month for car insurance will depend on several factors. These include:

• Blue book value of the car
• Your age and driving history
• Your credit history
• Where you live (urban or rural areas)
• New or used car
• Style of car
• How many people will be insured to drive the car
• Type of car insurance you will need

Once you have researched a few companies that look promising, you will have to choose which types of coverage you will want on the car. Every state requires that you include liability insurance on your policy which will cover repairs and other expenses if you cause an accident. Other types of insurance that you can include in your policy are collision and comprehensive insurance.

Collision insurance will cover your expenses in case you need to have the car repaired or replaced. This is usually a deductible attached, which means you will have to choose the amount of your own money you would be willing to spend on repairs before your insurance policy will pick up the rest. Deductibles are usually two-hundred and fifty to five hundred dollars. It is not required in most states that you purchase collision insurance, but if you will be buying a new car, you should add it to your policy. If buying a used car, you may want to determine the value of the car to see if it is worth paying for repairs in case of an accident.

Comprehensive insurance covers accidents that may occur that do not include car accidents. If your car is stolen, set on fire, or if it is damaged by an animal, comprehensive insurance will help pay for damages or replace the car. This insurance is also optional, and includes a deductible, but it may be worth having if you live in an area where these types of accidents are common or if you will be traveling often.

Other items that you can add to your car insurance policy include:

• Gap insurance, which will cover the depreciation of your car after you drive it off the lot, may save you money in the long run. Cars typically lose as much as twenty to thirty per cent of their value after leaving the lot. If you have an accident within a month or so after purchasing the car, your policy may not cover the full amount that you paid for the car - it will usually only cover the current value of the car. With gap insurance, you will be covered for the entire amount of the car.
• Roadside assistance is available for you to purchase if you would like a little extra protection when driving. With roadside assistance, you will be able to call for a tow truck, have a flat tire fixed, rent a car while yours is being repaired, or call for help if you lock your keys inside the car.

After you have decided which types of insurance you would like to include on your policy, you should visit insurance company web sites and get free quotes. You will be able to choose which insurance you would like, deductible, and extra services that the company offers. The quote you receive will give you an idea of what to expect when you purchase a policy. While these quotes may be a little higher or a little lower, you will have an idea of what your new or used car will cost you each month.

Deciding on the type of car insurance you need depends on where you will be driving the car and how often. The age of the car will also play a role in the amount you will want to spend each month. If you are unable to decide which policy to purchase, call an insurance agent and ask questions about the pros and cons of different policies. You will be able to alter your policy every six months, in case you change your mind. Just remember that you will want to buy enough coverage in case you are in an accident so that you will not have to pay out of pocket for expenses and repairs.

Credit School - Auto Insurance