Buying Car Insurance: Do You Know What Coverage Options You Really Need?
When it comes to purchasing car insurance, far too many people simply compare monthly premiums without really paying attention to how much coverage each policy offers. Unfortunately, this can often lead to individuals purchasing policies that do nothing more than fulfill their legal obligation to carry a minimal amount of liability insurance. This can result in huge out-of-pocket expenses in the event of an accident. That is why it is so important to work closely with an auto insurance agent before purchasing a new policy to determine what coverage options best meet your needs.
Below, you can learn more about some of the coverage options you will want to consider when purchasing your next policy.
The liability insurance that is required by law only protects other drivers by ensuring that you can pay for any damages you may cause to someone else's vehicle. Collision auto insurance makes sure that you are also protected by paying to repair damages to your own vehicle if you cause an accident. While financing companies will often require you to purchase collision insurance if there is a lien against your vehicle, this type of coverage is not required by law. Even though this coverage is optional for many people, most individuals with newer vehicles will find that collision coverage is well worth the slightly higher premiums each month.
Personal Injury Protection Coverage
When an individual purchases basic liability insurance it will come with two different types of coverage. These two coverage options are referred to as property damage and bodily injury coverage. Each type of coverage will have a per accident policy limit. This is the maximum amount of money that can be paid out for that type of claim associated with a single accident.
If you are injured in an accident with an individual who only purchased the minimal amount of insurance required by law, there is a good chance that your medical bills and other expenses could exceed the amount of bodily injury protection provided by their policy. Adding personal injury protection coverage to your own policy will ensure that any excess costs can be paid by your own insurance coverage rather than coming out of your own pocket.
Uninsured Motorist Coverage
Laws regarding the need to carry auto insurance are just like any other type of law. While the majority of people will abide by these laws, there will always be some individuals who choose to break the law and make the decision to drive without insurance. In the event you are in an accident with someone who does not have insurance, you could find yourself paying for the damage to your vehicle as well as any medical costs out of your own pocket.
Ask a car insurance agent to add uninsured motorist coverage to your next insurance policy; this will allow you to ensure you are covered even if the other driver is not properly insured.