What Car Insurance Coverage to Get
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Automobile Insurance is 100% mandatory in the U.S. Each specific state creates its own regulations that every carrier must abide by when writing car insurance policies. It can often be confusing deciding on what car insurance coverage to get.
There are two types of automobile insurance policies
The first is the mandatory type of policy that focuses on the state minimum amount of coverage. These policies are often less expensive but come with lower limits of protection. In a serious crash, this can expose the policyholder to lawsuits and even wage garnishment.
The other coverage is optional but perhaps even more important. This includes collision and comprehensive car ins plans. This broader coverage can be much more expensive but will give greater peace of mind. In the event a crash occurs, you will be protected more. This could really save you more money in the long run.
The most basic kind of policy you can buy is a liability. This is also known in the industry as PL & PD. PL stands for personal liability. This will pay for vehicle and medical injuries, resulting from a crash that you were responsible for. The term PD stands for property damage. When you hit another vehicle and it is your fault, then your insurer will pay up to the limit of your property damage on your policy.
Important tip: liability insurance limits are very important and you should get as much as you can afford. There are many reasons for this. Medical costs are soaring and even a minor accident can result in thousands in injury costs. The difference in cost between $50,000 and $100,000 of coverage is nominal. If the accident you were responsible for causes $90,000 in damages and you only have $50,000 in coverage, you will more than likely be sued for the remaining $40,000. This often results in wage garnering and financial hell. At sites like good to go auto insurance, you can get the cheapest liability only policy, with direct rates.
The only time it really makes sense to get the state minimum liability ins is in extreme financial conditions. This could include a college student that can barely afford a car, let alone insurance. If you can only afford liability car ins, try and get the highest limit you can.
Personal Injury Protection
PIP insurance covers the medical costs needed for injuries sustained in a vehicle crash. The good thing is this coverage is very broad and includes things like physical rehabilitation, chiropractor care, and even physiotherapy. Some states have certain minimal amounts of personal injury protection but you should always get the highest amount of coverage that you can afford.
If you get into an accident and are found responsible, then you need collision coverage if your automobile has damaged. You will need to pay for the deductible on the policy and the rest, up and to the insured limits, will be paid by the insurer. If you are financing or leasing your car, then collision insurance will be mandatory. This will add to the cost of insuring your vehicle, but protect you more financially, in the event you get into an accident. If you have paid off your loan in full or bought your vehicle outright, it is still recommended to get collision, until your car is 8 or 9 years old.
This type of auto insurance covers almost everything not related to a car crash. This includes damage caused by fire, water, vandalism, trees, and theft. You will be required to purchase comprehensive if your vehicle is leased or financed. If your car is worth more than $20,000 and you have paid it in full, it is still smart to get, just for the fact that it could be stolen anywhere and anytime. You need to protect the investment you’ve made, even if it does cost more insuring it.
If you total your car, then you might owe the bank more than the insurer will pay you for its value. This is also called being upside down. Gap insurance will cover this difference. So for example, let’s say you finance a BMW with a $35,000 loan. You total the car 9 months later and the insurer only offers your $29,000 for the current value of the BMW. If you have gap insurance, it will kick in and make up for this difference you owe the bank.
Uninsured Motorist Coverage
This is more important than you might think. There are millions of drivers that carry no insurance whatsoever. This means if they hit you and total your car, you are out of luck unless you have this type of ins. It is really not as expensive as you might think but so important to have. Get uninsured protection for less at goodtogo insurance today.
Get Cheaper Plans Online
You probably do a lot of your shopping online already, so why not buy insurance on the web? The rates are often 15% cheaper than through traditional agencies and you can manage your policy better on-line. Now that you know what car insurance coverage to get, it’s time to get quoted. Compare the best direct rates at good to go insurance and save.