Auto Insurance – Auto Coverage Essentials
In some states, car insurance is not required. Due to the current financial situation, many drivers in these states are choosing to cancel their policies and drive their vehicle without insurance. This is a very dangerous move, no matter how much money it may save you each year. Car insurance is important to have. Not only will it protect you and the vehicle, but it could also prevent you from being sued for millions of dollars if you are found to be at fault in an accident.
Many people are feeling the pinch of the economy and are choosing to carry the essentials in their insurance policy. While this is acceptable, as long as you meet the state requirements, it is not the best thing to do. Having minimal insurance will not protect you or your property if a claim is filed. Unless you have no assets and drive an older car, adding a little extra coverage to the essentials is highly recommended.
Currently, there are only two states in the country that do not require drivers to carry liability coverage. Those states are New Hampshire and Wisconsin. All other states have coverage that is mandatory. When reviewing your policy or getting a new one, always check what the state requirements are. Personal injury protection is required in many states. This coverage will pay for medical expenses you incur and will also cover wages lost as a result of injury in an accident. States that do not require this may require you to have coverage that pays for your medical expenses.
Different states have different requirements for bodily injury liability. No matter what the state requirement is, or even if there is, it is suggested that you assume this responsibility. If necessary, it may be better to purchase a higher limit. This will help protect you if someone else is injured and you are found to be at fault. If the coverage does not cover your medical expenses, your assets will be at risk. The attorneys will do their best to claim your assets in a lawsuit if you do not have liability coverage. This does not apply to everyone. If you have very few assets, it may not be beneficial to pay for additional coverage.
In addition to liability coverage, there are other things to consider, such as comprehensive and collision coverage. Collision will cover any damage done to the car in an accident. Comprehensive covers damage caused when it is not an accident. This could include fire, theft, falling objects, or explosions. These two types of coverage are generally required when you lease a vehicle. They are also very important if you have a luxury car.
No matter what the state requires, you want coverage that protects your assets, not just your car. He also wants something that will pay for medical expenses. While many states don’t require them, it’s in your best interest to have them on your policy. Having just the bare minimum can save you money on your policy, but it could cost you thousands if you’re in an accident.
Most people feel that car insurance is a waste of money. While this may be true if you go your entire life without an accident, it is not advisable to be uninsured. You never know what could happen, so it’s best to pay the money and protect yourself in case of an accident. This doesn’t mean you have to have the best of the best, but make sure your medical expenses are covered and your assets are well protected.