Car Insurance – Auto Coverage Essentials

Some states do not require you to have car insurance. Many drivers in these states have decided to stop having car insurance and opt to drive without it. This is dangerous, regardless of how much money you save each year. It is essential to have car insurance. It will protect your vehicle and you, as well as prevent you being sued for millions of dollar if you are found to be at fault in an accident.

Many are feeling the effects of the economy and choosing to only have the minimum amount on their insurance policies. This is acceptable as long as the state requirements are met. However, it is not the best choice. If you file a claim, having minimal insurance won’t protect your assets or your personal property. If you don’t have any assets or drive an older vehicle, it is strongly recommended that you add some extra coverage beyond the essentials.

There are currently only two states that don’t require drivers to carry liability coverage. These are New Hampshire, Wisconsin and Minnesota. Other states do not have mandatory coverage. Always check the state requirements when reviewing your policy and obtaining a new one. In many states, personal injury protection is mandatory. This coverage will cover your medical expenses as well as any lost wages due to injuries sustained in an accident. You may be required to have coverage that covers your medical expenses in states that don’t require it.

Different states have different requirements regarding bodily injury liability. It doesn’t matter what state requirement you have, or if one exists, it is recommended that you carry this liability. It is best to buy a higher limit if it is necessary. This will protect you in the event that someone is hurt and you are found to be at fault. Your assets could be at risk if the coverage doesn’t cover their medical expenses. If you don’t have liability coverage, lawyers will make every effort to seize your assets. This coverage does not cover everyone. It may not make sense to purchase additional coverage if you have little or no assets.

Other than liability coverage, you should also consider collision and comprehensive coverage. Collision covers any damage to the vehicle that results from an accident. Comprehensive covers damage that isn’t caused by an accident. This covers fire, theft and falling objects, as well as explosions. These types of coverage are required when leasing a vehicle. These coverages are especially important if you have a luxury vehicle.

You want coverage that protects your assets and not just your car, no matter what the state may require. Also, you want coverage that covers medical expenses. These are not required by every state, but it is a good idea to include them in your policy. While having only the minimum coverage may be cheaper, it could end up costing you thousands of dollars if you are involved in an accident.

Many people believe that car insurance is a waste. This may hold true if you live your whole life without being in an accident. However, it is not wise for anyone to go without insurance. It is better to have insurance than not. You never know what might happen so make sure you pay for it. You don’t have to be the best. However, make sure you are protected and covered for any medical bills.