Car insurance policies provide different kinds of coverage, but some coverages duplicate others and can be unnecessary. Minimum car insurance required by law varies from state to state. The only auto insurance you’ll need is the bare minimum required in your state. In most states, that means a specific amount of liability insurance, but in some states other kinds of coverage are required.
Any auto insurance policy sold in your state will meet all the legal requirements, but a policy that meets those requirements could still put you and your family in serious financial risk. The average car insurance policy consists of liability coverage, comprehensive and collision coverage. Many also include personal injury protection, medical payments and uninsured motorist coverage.
Liability coverage is needed because it protects your assets (property and money) from lawsuits and claims arising from accidents to the limits that are purchased for it. Personal injury protection covers medical costs arising from injuries suffered in an accident.
If you have health insurance you probably don’t need it since Obamacare will soon require all Americans to get health insurance. However, it is required in some states. If you let others ride in your vehicle you are responsible for injuries they receive in your car.
Medical payment coverage is supposed to pay for medical costs not covered by personal injury protection. If you have health insurance you probably won’t need it either.
You will need uninsured or under-insured coverage because there are large numbers of people driving without car insurance or enough car insurance. Since most of them are poor it can be difficult to collect from them. This insurance will pay claims even if you get in an accident with somebody without insurance.
Comprehensive insurance covers damage to your car that occurs when it’s not on the road. It is a good idea to purchase because most home owners and renter’s insurance policies do not cover cars. If you drive a low valued vehicle such as an old pickup truck you might be able to live without comprehensive.
Collision insurance covers damage to your vehicle for accidents that are your fault. If you’re driving a low value vehicle such as a 10 year old used car you might be able to go without this. If you’re financing a car this might be required. It makes no sense to have collision insurance on an old car that is worth a couple of thousand dollars.
However, most drivers need to carry are liability, collision, comprehensive and uninsured motorists insurance. Eliminating some of the other coverage can reduce premiums. The best way to decide if additional coverage is worth it or not is to get several insurance quotes. Compare the quotes with uninsured coverage and without it to see how much it would cost. In many cases the small cost for additional coverage can be worth it.
Any auto insurance policy sold in your state will meet all the legal requirements, but a policy that meets those requirements could still put you and your family in serious financial risk. The average car insurance policy consists of liability coverage, comprehensive and collision coverage. Many also include personal injury protection, medical payments and uninsured motorist coverage.
Liability coverage is needed because it protects your assets (property and money) from lawsuits and claims arising from accidents to the limits that are purchased for it. Personal injury protection covers medical costs arising from injuries suffered in an accident.
If you have health insurance you probably don’t need it since Obamacare will soon require all Americans to get health insurance. However, it is required in some states. If you let others ride in your vehicle you are responsible for injuries they receive in your car.
Medical payment coverage is supposed to pay for medical costs not covered by personal injury protection. If you have health insurance you probably won’t need it either.
You will need uninsured or under-insured coverage because there are large numbers of people driving without car insurance or enough car insurance. Since most of them are poor it can be difficult to collect from them. This insurance will pay claims even if you get in an accident with somebody without insurance.
Comprehensive insurance covers damage to your car that occurs when it’s not on the road. It is a good idea to purchase because most home owners and renter’s insurance policies do not cover cars. If you drive a low valued vehicle such as an old pickup truck you might be able to live without comprehensive.
Collision insurance covers damage to your vehicle for accidents that are your fault. If you’re driving a low value vehicle such as a 10 year old used car you might be able to go without this. If you’re financing a car this might be required. It makes no sense to have collision insurance on an old car that is worth a couple of thousand dollars.
However, most drivers need to carry are liability, collision, comprehensive and uninsured motorists insurance. Eliminating some of the other coverage can reduce premiums. The best way to decide if additional coverage is worth it or not is to get several insurance quotes. Compare the quotes with uninsured coverage and without it to see how much it would cost. In many cases the small cost for additional coverage can be worth it.
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