Whether you are just buying your first car or are looking to change insurance companies, you may have some questions about your car insurance.  Here are some car insurance facts to point you in the right direction.

There are three basic kinds of car insurance:

• Comprehensive: This pays for any damage to your car from vandalism or theft and even fire and water damage.  If you have paid off your car loan you may be able to drop your comprehensive coverage, especially if the Blue Book value of your car is less than $5,000.

• Collision: If you have a car loan, you are required to have this kind of insurance.  This kind of insurance will pay for car repairs if you are in an accident.

• Liability: This kind of coverage is required in most states.  It will pay for damage to another person’s property that may occur as a result of a car accident, as well as third-party personal injury and death-related claims.

There are also optional types of car insurance, if you feel you might need some extra coverage.  These include:

• Medical payments and personal injury protection, which covers the cost of medical bills for passengers and the policyholder.

• Uninsured or underinsured motorist, which provides additional coverage in case you are involved in an accident with someone who doesn’t have insurance.

• Gap coverage, which will make up the difference between what you paid for the car and what insurance pays if something catastrophic happens to the car.

• Full tort or limited tort coverage means that you save some money on your insurance bill, but you agree not to sue after an accident.

For more information on car insurance, check out this article about insurance Myths and Misconceptions.  If you have more questions or would like to get a quote, make sure you speak to someone who knows auto insurance in Austin.