Why You Need To Have More Car Insurance Than The State Requires
Every state requires you buy and keep auto insurance for every vehicle you register to drive. However, the requirements are often not enough protect you financially if you are in an accident unless it is a fender-bender and any injuries were very minor. It can be tempting to go with minimum coverage to appease the state so you can save yourself money on the monthly premiums. Unfortunately, if you are at fault in a serious accident, you can be sued for injuries and damages not covered by your insurance policy. Considering the cost of a single day in the hospital and body work on a badly damaged vehicle, paying a bit more every month will save you a lot of money. Here are just a few additions to minimum coverage you should consider when talking about your insurance policy with an agent.
Increase the Minimums
States require coverage for injuries to other people and for damage to the other vehicle. If more than a couple people are involved or the injuries are serious, the minimum is not going to cover everything. It is advisable to increase the bodily injury amount. The insurance agent can help you determine how much you should have based on average medical bills over the last couple of years. They can also help you decide how much property damage you should have to repair the other vehicle. Agents have data that gives them the average cost of taking care of a car accident in you area.
Personal Injury
If you are at fault and are injured, the bodily harm liability in your policy is not going to pay your own medical bills. It is also possible that your normal health insurance policy will not pay them either. The only way to be sure you won't be stuck with a large medical bill is to pay for personal injury protection coverage.
Collision
Another bill your insurance won't pay if you are found at fault is the bill to repair your vehicle. This is why lenders mandate that you carry collision insurance until the loan is paid in full. They do not want to end up with a vehicle so damaged it is not worth anything if you stop paying the loan because the vehicle was totaled. Collision insurance is the coverage for your vehicle. With collision coverage, your vehicle will be returned to it original condition or you will be able to purchase a new vehicle of the same value.
Don't think you are saving money by only having the minimum insurance required. You may be fine for many years, but then, a single accident can wipe out all the money you saved plus a whole lot more.
