While auto insurance is mandatory in order to operate a vehicle, simply purchasing the minimum state standards is not the smartest way to insurance yourself and your vehicle. There are many different types of coverage that protect drivers from certain circumstances, from accidents to accidental damage. Evaluating the common insurance options is critical to ensuring proper coverage levels. When it comes to auto insurance, there is no one premiere package that stands above the rest.
If you are at fault for an accident, you can be held legally responsible for many of the resulting expenses. This includes hospital and medical charges for any bodily harm as well as property damage resulting from an accident. Having the state minimum coverage limit is almost always not enough to cover all of the possible charges.
Injury expenses can really get high, considering that everything from emergency services, hospital bills, funeral expenses, compensation for lost income, legal fees, structural repairs, to vehicle replacement can all be charged to the person who’s at fault. Surprisingly, it often costs just a few dollars more per month to increase your liability coverage by hundreds of thousands of dollars.
Underinsured Driver Insurance
If someone without auto insurance or very little insurance causes an accident, you do have the right to sue him or her. But what if they have no money or assets? In this case, you are responsible for your own damages. This is where underinsured driver insurance comes in.
This option covers medical expenses for all of the passengers of your vehicle when the liable driver cannot. Some states even offer an option that also covers property damage. This option ensures that a terrible accident can be made just a little easier to recover from.
Not all car damage is caused by accidents with another car. Storms, falling trees, vandalism, and theft are all covered under a comprehensive policy option. Even passive objects, such as shopping carts, trees, parking garage posts, and animal collisions will be covered. Broken windows and windshields from rocks kicked up from the road would be covered as well as most types of damage that do not involve other drivers and vehicles.
Comprehensive covered not legally required if you do not have a lien holder, but it is absolutely necessary to cover life’s little accidents. Even when you are safe at a home, a falling branch during a storm can total a vehicle. Comprehensive insurance insures that you are prepared in situations like these.
Other Coverage Options
These three auto insurance parts cover the majority of expenses from nearly any type of vehicular accident. In addition to those main parts, many supplemental options exist to increase peace of mind and to prepare for the worst.
Towing coverage can cover you when your vehicle breaks down on the road or won’t start in a parking lot. Rental reimbursement is available to provide an alternate vehicle while yours is in the shop. Sound system coverage will protect the investment made in after-market car stereo equipment.
No matter what the situation might be or what type of vehicle options are installed, there is a policy that can protect your investment and personnel health and safety. Understanding all of the offered options and not just having the state minimums is the most cost effective way to insure yourself and your automobile.