Explaining Different Areas Of Car Insurance Coverage
Car insurance is very important. It can also be confusing if you're not aware of the different areas of insurance that go into a policy.
If you have proper car insurance when you need it everything goes smoothly. One exception to this is when you are involved in an accident with someone who does not have insurance or does not carry enough insurance.
Most people are going to skimp on their car insurance based on lack of income to carry the proper amount. However, some people really do not understand what the various types of car insurance coverage are so let's take a look at those in this article.
1. Liability insurance. This is one you really want to pay attention to. Most states are going to have minimum coverage required so you need to know what that is in the state you live.
Another thing to consider is whether the minimum coverage required in your state is going to be adequate to protect you if you're involved in an accident. Also is the minimum coverage going to be enough if you are the one that causes the accident?
One area where drivers can be underinsured is in vehicle repair coverage. Often times the driver is not carrying enough insurance to totally repair their car, or even replace it if the car is totaled.
If you find yourself a lawsuit because you're underinsured it could destroy you financially. It's worth your time to talk to an agent or get a proper online insurance quotes so that you're carrying the correct amount of liability insurance for your financial situation.
Here are 2 areas of liability insurance explained.
- Bodily injury: The minimum amount of coverage required for this area of car insurance coverage he is normally 15,000 per person or $30,000 per accident.
This is means that the car insurance company is going to cover this much of your medical expenses if you're in an accident. Just because this is the minimum required doesn't mean that that's the proper amount you should carry. This is an area that is worth looking into bumping up to $100,000 per person or $300,000 per accident.
- Property Damage Liability: Will cover the damage done to vehicles in an accident. The minimum required is typically $5,000 per accident, but experts recommend a policy for $50,000-$75,000 per accident.
2. Collision Insurance. This is going to cover any damages to your car if you collide with another car. This is not always required by law, but to protect yourself financially it is a good idea.
This insurance is relatively inexpensive when you consider how expensive it can be to repair or replace your vehicle. Pay attention to the deductible level, because if you set it to high just to get a lower quote on your premium you may find yourself unable to pay for the repair.
3 other areas of car insurance to keep in mind are comprehensive insurance, medical payments and uninsured/underinsured motorist. If you're in an accident caused by an uninsured or underinsured motorist you want to be sure and have enough insurance to cover you if they can't.