Many of us would like to know whether it is necessary to have auto insurance for a used car. Since the state has laws which clearly specifies that every driver need to have some kind of auto insurance and the value of the car has nothing to do with it. So you need to have auto insurance, even if your car is used. A typical auto insurance policy provides the customers with different type of coverage. A lot of flexibility can be gained through the amount of coverage chosen by you. You need to purchase liability insurance as it is made compulsory by the law. Through the liability insurance you can get financial assistance if you get involved in an accident which causes bodily injury to some person or a property. A minimum amount for such type of coverage is fixed by the state. This type of law ensures that every person who is driving should be able to pay the victim if an accident occurs. But if you just purchase an auto insurance based on the minimum coverage then you can never compensate for the actual damages due to the accidents through the coverage money, as the minimum amount is ridiculously low. So it important to have coverage more than the minimum amount set by the law.
Purchasing medical coverage and uninsured motorist coverage are mandatory in some states and in other states it is optional. The medical coverage will take care of the medical expenses incurred by the policy holder on the account of an accident. Uninsured motorist coverage takes care of the damages that are caused to you by a person who does have any insurance or does not have enough coverage to compensate you. An insurance agent will be the right person to judge you if inclusion of these coverage in your auto insurance policy is not mandatory in your state. Based on your budget and requirement you can get this coverage for your used car.
The collision and comprehensive coverage takes care of the physical damage that is caused to your used car due to collision or other reasons. If your used car gets stolen then you can receive compensation through this coverage. If the value of your used car is less than thousand dollars then it is not feasible to include this coverage into your auto insurance scheme as the rate of deductibles and premiums will not make it a profitable proposition.
By: David Hunter
Posts Tagged ‘Liability Insurance’
Back Up Your Used Car With Auto Insurance
January 24th, 2010Classic Car Auto Insurance
January 16th, 2010
For those passionate about collecting and restoring classic muscle cars, few things can be as important as protecting these symbols of Americana. For this reason, many classic car enthusiasts will tell you that aside from the car itself, the most important thing about collecting and restoring classic muscle cars is carrying the right auto insurance. There are many companies out there that offer specialty insurance; in order to choose the right company for you, and certainly before shopping around, you need to ask yourself a few questions.
First off, where do you take your car? If you participate in club events and car shows, there is coverage available for damage incurred at both, as well as liability insurance. Many companies extend these coverages for overseas event as well. If these types of coverage are appropriate for your situation, then consider how much coverage you are going to want and/or need. A helpful tip of advice is to think worst case scenario at an event, and then get enough coverage for that.
Second, ask yourself some questions about the car itself. If you are still in the restoration process, do you need coverage for the duration? And afterward, do you want to be able to choose your own mechanic? Do you want to insure your baby for the actual dollar amount she is worth, or for what she’s worth to you? As you are answering these questions, write them down, and be prepared to ask the insurance representative for exactly what you want.
Once you know what type of coverage you want, how much you want it for, and what types of requirements you have for a policy, then it’s time to shop around. You can do this a few different ways. You can do some research into the leading classic car insurance companies, and make some good old fashioned phone calls. Or, you can take advantage of the car insurance quote comparison websites available on the Internet. No matter what route you choose, be prepared to ask the representatives for what you want. They want your business, and are ready to help you find the right policy for your situation.
You can’t put a price on a classic muscle car like a 1967 Pontiac GTO, especially when you’ve put your heart and soul into a perfect restoration. So protect that emotional and monetary investment, and get the perfect auto insurance policy for keeping it safe.
By: Rick Swanson