All U.S. states require drivers to at least buy property damage liability insurance to repair the vehicle of anyone that you hit in an auto accident. In the rare case that your state does not require auto insurance, such as, Virginia and New Hampshire, you are still responsible for any damage you cause and if you are unable to pay for the damage you are likely to lose your license and registration.

The Financial Point has put together a list of things you should know about auto insurance:

  • One of the main factors that determine the cost of auto insurance is deductible. A deductible is a certain amount of money that a policyholder has to pay before an insurance company covers the rest. The higher deductible is, the less you will have to pay for car insurance.
  • Other factors affect the cost of insurance as well. They are the type of vehicle, driving record, credit score, vehicle usage, rate trends, and other factors.
  • One of the main requirements of the state of Texas is that it must include minimum liability coverage. However, it is important to understand that this type of insurance covers other cars and their owners in case of an accident, but not you and your vehicle. Minimum liability coverage is a good option for car owners with a tight budget, but usually, it is not sufficient.
  • If you decide to drive your personal car for business purpose and use as a commercial vehicle, you need to get commercial auto insurance that will protect your vehicle.

If you are currently shopping for auto insurance for your vehicle allow us to assist you in finding the best carrier, coverage, and rates! We are licensed and experienced and ready to answer your questions and make sure that you get the best policy to address your needs without overpaying!

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