How much car insurance is right for you?
The next time you are on the highway, think about what Approximately one in seven American drivers on the road has no auto insurance is the most recent estimate of the Board of insurance research, which noted that five states with the highest percentage of uninsured drivers were in Florida, Mississippi, New Mexico, Oklahoma and Tennessee with that many people driving without cover, it is more important than ever for you to be insured, but have you how much car insurance you need.
If you're like many people, you may be in an economic pinch these days Your inclination may be to get the minimum insurance cover required by law in your state the problem with a minimum cover is that it could not protect completely you or your property if you're at fault in an accident it's better idea to carry more than the minimum coverage unless you drive an old car with little value and no assets to protect.
Every state in the nation with the exception of New Hampshire requires you to have liability insurance coverage mandatory This varies depending on the state.
The table below shows the minimum liability limits in thousands of dollars.
The bodily injury liability for one person in an accident.
The bodily injury liability for all persons injured in an accident.
In Alabama, for example, the minimum requirements are 25,000 of bodily injury liability for one person, 50,000 liability personal injury for all people in an accident and 25,000 property damage liability Another type of coverage, injury protection PIP, or a system called medical payments MedPay in some states, pays for your medical expenses, lost wages and whatever other costs can occur when you are injured in an accident, it usually pays about 80 percent of your losses and it also pays a benefit of PIP death is necessary in Delaware, Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania and Utah Arkansas and Maryland, the cover is not needed, but drivers must reject in writing if they choose not to have uy.
Some states also require you to buy car insurance that will cover your medical expenses, loss of pain and suffering, and in some states, the car damage, if the other driver is at fault and is uninsured or underinsured or the table below lists ALSO States that need this uninsured or underinsured motorist coverage.
While every state except New Hampshire, has minimum requirements for bodily injury liability, it is probably in your best interest to purchase higher limits if someone is injured and you are at fault, the minimum liability coverage can not cover the other driver's medical expenses, in which case it will most likely be after your insurance experts generally recommend you buy assets 100 300 defined limits of bodily injury liability 100,000 for a person in an accident and 300,000 for all people injured in an accident on the other hand, if your personal property donation amount t to many, it is not for another driver to get if you had sue the minimum requirements might actually suit you and will save you some money if necessary.
In addition to various forms of liability insurance, there is a collision and comprehensive auto insurance coverage to consider collision insurance covers damage to the car of the policyholder arising from the performance in anything , whether another car, a fire hydrant or a light post comprehensive coverage takes care of your car in case of theft, fire, falling objects, explosions or other unexpected problems .
Collision and comprehensive coverage are needed in most leases, and are essential if you own a luxury car if you're driving a jalopy, on the other, and the amount of your premium and deductible are close to the value of your vehicle or if the excess, you might want to consider doing without this coverage.
Before buying any type of car insurance coverage, make sure to study your other insurance policies so that you do not charge t end up paying for something you do not need If you have a plan decent insurance disease, you might get away with buying the bare minimum personal injury protection coverage or none at all if your state didnt need it, however, you could end up paying a co-pay and deductible apply wouldn t if you have PIP or MedPay.
Uninsured or underinsured motorist coverage may also be a wise purchase, even if you have full medical coverage because it can pay for your pain and suffering damages If you are offered a Roadside Assistance coverage by your insurance company, you might not need if you already belong to an organization like AAA that it offers the same for the mechanical breakdown insurance If you own a newly financed or leased vehicle is still under warranty, such coverage is useless.
It's easy to resent having to spend money on insurance but keep in mind that auto insurance will probably come to your rescue at some time, it is imperative to buy a policy useful know what coverage you need and know what additional coverage should your lifestyle so if trouble strikes, you're ready.
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