In some states, it is not required to carry car insurance. Due to the financial situation of today, many drivers in these states are opting to cancel their policies and drive their vehicle with no insurance. This is a very dangerous move, no matter how much money it may save you each year. Car insurance is important to have. Not only will it protect you and the vehicle, but it could also prevent you from being sued for millions of dollars if you found at fault in an accident.
Many people are feeling the effect of the economy and are choosing to carry the bare essentials on their insurance policy. While this is acceptable, as long as you meet the requirements of the state, it is not the best thing to do. Having minimal insurance will not protect you or your assets if a claim is filed. Unless you have no assets and are driving an older car, it is highly recommended to add a little extra coverage to the bare essentials.
Currently, there are only two states in the country that do not require drivers to have liability coverage. Those states are New Hampshire and Wisconsin. All other states have coverage that is mandatory. When reviewing your policy or obtaining a new one, always check what the state requirements are. Personal Injury Protection is required in many states. This coverage will pay for any medical expenses you incur and will also cover any lost wages as a result of an injury in an accident. States that do not require this may require you to carry coverage that pays your medical expenses.
Different states have different requirements for bodily injury liability. No matter what the state requirement is, or if there even is one, it is suggested you carry this liability. If it is required, it may be best to purchase a higher limit. This will help to protect you if someone else is injured and you are found at fault. If the coverage does not cover their medical expenses, your assets will be at risk. Lawyers will do everything they can to claim your assets in a lawsuit if you do not have the liability coverage. This does not apply to everyone. If you have very little assets, then it may not be beneficial to pay for the extra coverage.
Aside from liability coverage, there are other things to consider, such as comprehensive and collision coverage. Collision will cover any damage that is done to the car in an accident. Comprehensive covers damage done when an accident is not involved. This could include fire, theft, falling objects or explosions. These two types of coverage are usually required when you are leasing a vehicle. They are also very important to have if you own a luxury car.
No matter what the state requires, you want to have coverage that will protect your assets, not just your car. You also want something that will pay for medical expenses. While many states do not require these, it is in your best interest to have them on your policy. Only having the bare minimum may save you money on the policy, but could cost thousands if you are in an accident.
Most people feel car insurance is a waste of money. While this may be true if you go your entire life without an accident, it is not wise to be uninsured. You never know what could happen, so it is best to pay the money and protect yourself in the event of an accident. This does not mean you have to have the best of the best, but make sure your medical expenses are covered and your assets are well protected.
By: Rocco Beatrice
Posts Tagged ‘Medical Expenses’
Back Up Your Used Car With Auto Insurance
January 24th, 2010
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
Affordable High Risk Car Insurance in California
January 11th, 2010
California is deadly serious about all of its drivers having at least a basic liability policy. In order to make certain that every single driver has the resources to buy auto coverage, California offers two super cheap policies, the cheapest policies that it is legal to buy anywhere in the state.
The first policy is known as the California Low Cost Automobile Insurance Program, or CLCA. Under this state-sponsored program any driver with a good driving record who is at least 19 years old and who meets certain income requirements can purchase a super-cheap liability insurance. For additional information call toll free: 1-866 – 602-8861.
But even if you do not meet the requirements for the CLCA program, California still makes an extremely affordable basic liability policy available for all of its drivers. The policy is known as a 15/30/5 policy.
This policy pays a maximum of $15,000 toward the medical expenses of any one individual who is in an accident with your vehicle if you are determined to be at fault in the accident. It also pays a maximum of $30,000 to cover the medical expenses of everyone involved in the same accident and it pays a maximum of $5,000 for any property damage your vehicle has caused.
There are two reasons this coverage is considered high risk. For one thing a liability policy alone pays nothing for the repair of your vehicle after an accident and it pays ZERO for your medical bills or for the medical bills of anyone in your vehicle at the time of an accident.
More importantly, perhaps, a basic liability policy doesn’t provide for much coverage. Even a moderate accident could result in medical and property damage costs far in excess of the maximum payouts of your policy. If that should be the case YOU could be held personally liable for paying any difference, even if it means you have to sell your home to do so.
Still, if money is an issue a basic liability policy is the cheapest form of car insurance you can buy and still drive 100% legally in California, and if you want to get your liability policy at the cheapest rate possible then you’ll want to look online.
In fact, buying your policy online is the cheapest way to buy your auto coverage BY FAR. Online sellers have almost no overhead plus they have a lot of competition, two facts which add up to incredible savings for you! Buying your policy online is equivalent to buying it at wholesale prices.
By: Alexis Jensen