State law requires that you carry auto insurance if you own a car and drive on the roadways. However, not all car insurance requirements are the same. Depending on where you live, you may be required to carry more coverage. Auto insurance protects you, your vehicle and your assets, so it’s important to know how much coverage you need.
Liability coverage is the portion of the car insurance policy which you are required to carry by law. Car insurance providers will provide you with a basic policy which meets the legal requirements for the state where you live. However, this amount may not be enough.
Your policy will designate a maximum amount per injured person and a maximum amount per incident. If multiple people are injured and you’re at fault, the amount of the policy may not be enough to cover all the medical expenses.
If you don’t have enough insurance, you aren’t off the hook for the remainder. Your insurance policy will pay up to the maximum, but the other parties may seek payment from you. You will be left to pay out of pocket any other expenses. Instead of looking at the minimum amount required by law, you should consider the amount of coverage necessary to pay for a major accident.
You want to protect your investment and purchase comprehensive/collision insurance for your vehicle. Most of the time, these two types of coverage are sold together. However, they do cover different situations.
Collision insurance covers damage to your vehicle if you are in an accident on the road. It can be an incident which involves another vehicle, the guardrail or just hydroplaning off the road. You’re even covered if you hit a deer on the road.
Comprehensive covers your vehicle for just about any other incident. This includes hail damage, falling limbs or theft and vandalism. You’ll want to check with your policy if your car is damaged to make sure it’s an incident which is covered.
With this type of coverage, the insurance provider pays for the repairs up to the value or a percentage of the value of the vehicle. At that point, it may “total” out the vehicle and pay for its value.
While liability and comprehensive/collision insurance are the two main components for car insurance policies, add-ons are available. You may add a renter’s policy which allows you to get a rental vehicle while yours is being repaired. You may want roadside assistance in case you’re stranded far from home.
All of these components add to your premiums, but you can qualify for discounts which will lower the costs. That’s why it’s best to talk to an insurance agent rather than just getting random quotes online. An agent will look at your situation and offer you the best policy for your needs and budget.
You must have car insurance if you want to drive and own a vehicle. Why not make it a policy that takes care of you and your vehicle so you can have peace of mind every time you get behind the wheel.
Contact us today to find out how we can help you get the right car insurance policy for your vehicle.