Purchasing a vehicle is a major investment and you should always protect your investments with insurance. You will spend hours researching the new car that you want to buy and you will also spend a lot of man hours going to dealerships and trying to find your new car. Test driving a car will give you a good idea of how the car will handle on the road and it will also let you know if you like the car. Making sure that the car is practical for your everyday use and making sure that you purchase a car that you can afford is very important. For example, if you can afford five hundred dollars a month payment and you find a Mercedes that falls into that price range, you also want to factor in maintenance cost. If your Mercedes breaks down and need a new starter, it could cost three or four hundred dollars. Compared to the cost of a starter for a Toyota Camry, which is around one hundred and fifty dollars, the Mercedes starter is significantly higher. You need to factor in the cost of mechanical repairs when you are budgeting for your new car. You need to make sure that you can afford to keep your new car once you purchase it.

It is also state law you carry insurance on your vehicle. If there is a loan attached to the car then you will have to carry full coverage insurance and if there isn’t a loan attached to your car you are allowed to carry liability coverage only. Full coverage insurance will cover you and your investment in the event that you are involved in an accident. If you have an active loan on your car and your car is wrecked beyond repair then the insurance company will pay the balance due on the loan. It will also cover any medical expenses in the event you are injured. If your car doesn’t have a loan attached to it and you choose liability insurance it will only cover damages that you cause to other people. For example, if you have liability insurance and you hit another car, then your insurance company will only pay for damages that you caused to the other vehicle. Carrying insurance is not an option. In fact, if you don’t have insurance on your car you can be given a ticket that can cost up to four hundred dollars.

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