Are you a new driver shopping for car insurance? If so, deciding between automobile insurance plans may seem overwhelming. There are multiple insurance types with different coverage options, and the prices are often different for various carriers. While car insurance may seem confusing, it's a highly necessary form of protection. According to Forbes, the average driver experiences a car accident once every 17.9 years. That means people who start driving at age 16 will typically experience at least three accidents during their lifetime. Car insurance covers damage to your car, any liabilities you may have, and potential medical bills that result from the accident. Below is some basic information on car insurance to help you find the best option for you.

Types of Car Insurance

There are two primary types of automobile insurance plans. The first type is liability insurance. Liability insurance covers any damage that you may cause to others if you're responsible for a car accident. This insurance will cover the other driver's repairs, medical bills, and other expenses. In most states, liability coverage is required by law. The other type of car insurance is collision insurance. A collision policy will cover the other driver's expenses if you're responsible for the damage, and it will also cover damage to your own car. In fact, most collision automobile insurance plans will cover damage to your vehicle even if the accident wasn't your fault. In most states, it's not required to carry collision insurance, but it's still wise to carry, as it can protect you from significant expenses.

Car Insurance Costs

There are two primary costs for automobile insurance plans. One is the premium. This is the regular cost of the insurance coverage. You can usually pay this on either a monthly, quarterly, or annual basis. The other cost is your deductible. If you file an insurance claim, the deductible is the amount you must pay out-of-pocket before the insurance coverage kicks in. For example, you may have to pay $500 out-of-pocket, and then insurance will cover the rest. Generally, the lower your deductible, the higher your premium.

Car Insurance Premium Factors

How is your car insurance premium calculated? It depends on a variety of factors. One is your riskiness as a driver. If you have a history of driving violations or accidents, or if you're a new driver, your insurance will likely cost more. Another factor is the value of your car. The higher its value, the higher your premium will likely be. Other factors may include how often you drive and how far, as well as geographical factors.

Ready to shop for automobile insurance plans? Contact Insurance World today to get started. Our team of experts has more than 35 years of experience, and we can help you find the ideal car insurance plan for your needs.