BASICS
Many states require you to carry a basic minimum level of auto insurance. When buying car insurance you must find a balance between coverage you want or need and the cost of the premium. If you don't get the coverage you need, you may be responsible the cost of:
-Bodily injuries to yourself or others.
-Lost wages due to injury.
-Benefits to survivors when death occurs.
-Repairs to vehicles.
-Lawsuits brought against you due to an accident.
LIABILITY INSURANCE
If you are determined at fault for an accident you need liability insurance. This protects you and your assets when you cause injury and/or property damage. Bodily injury liability covers you for injury or death caused by you. Property damage liability covers you for any damage caused to property (e.g. another vehicle, light post, fence etc.). If you are held responsible for an accident, you may be liable for property damage, hospital and medical payments, rehabilitative care, lost wages and pain and suffering. If you are sued for more than your liability coverage then you are responsible to pay the rest. It is very important to ensure you have proper liability coverage. Do you want to pay for the rest of your life if you are not properly covered?
Your liability coverage is usually defined as split limits, (e.g. 50,000/100,000/50,000). In this example $50,000 is the maximum the insurance company will pay for bodily damage to each person. The maximum amount paid is $100,000, no matter how many people are hurt in the accident. Does this sound like enough coverage when million dollar lawsuits are being filed? The final $50,000 is the maximum for property damage. As an insured driver, for your own peace of mind, you must be sure to get sufficiante coverage and not just the minimum.
COLLISION AND COMPREHENSION
Collision insurance pays for damage to your own auto no matter the type of accident or who caused it. Comprehensive coverage pays for damage to your auto by something other than a collision. Coverage includes theft and vandalism and disasters such as fire,flood and hail. There is usually a deductible amount for collision and comprehensive coverage. The lower the deductible, the higher the premium. As your vehicle ages and the value declines, the amount you would collect for a total loss declines. When deciding on collision coverage, keep in mind the age and value of your auto.
UNINSURED AND UNDER INSURED PROTECTION
This type of insurance is highly recommended to protect you and your family. If you are involved in an accident with an uninsured or under insured driver you may face many difficulties. It may be years before you can recover any money from a person who has little or no insurance. Believe me when I say many individuals risk driving without coverage. Who will pay for car damages and medical treatment resulting from an accident? The answer of course is YOU! In the future you may be able to collect some or all of the money you had to put out. Uninsured and under insured insurance pays the cost of damages and medical treatments even if you are involved in a hit and run. You and any passengers are covered for medical expenses, lost wages and other injury related losses. You may also collect for pain and suffering. Under insured coverage will pay for damages that exceed the amount of coverage that an under insured driver may have. If this type of coverage seems like it is not needed, think again. When you are driving, don't you have to more for the other driver than yourself. Unfortunately the same holds true for insurance. This coverage gives you a peace of mind and protects you and your family. To recap, proper coverage is needed to ensure you and your future.
It is recommended that you get a quote on all types of insurance at least every three years. Do you notice that your premium seems to go up each year? Now is the time for that new quote. To receive five free, no obligation quotes begin by entering your information in the form below.
