Looking for better car insurance?
Although it’s not an exciting topic to talk about, how to purchase auto insurance is important. We don’t like spending our hard-earned money on auto insurance. Do you feel this way? Is this the best decision?
Many of us don’t plan to cause an accident or be involved in one. An attorney who helped thousands of accident victims and said, “It won’t happen to me,” I can tell you that there are many types of coverage that you should be aware of when buying automobile insurance.
o “Bodily injury.” This “liability insurance” is required by most states. This minimum amount is usually $15,000 per person/$30,00 per occurrence. If you cause an accident, the maximum amount that any injured person can receive from their insurance company is $15,000 and $30,000 for any accident. This applies even if you injure more than 30 people. If this amount is insufficient to compensate the injured parties, you can choose to pay the remainder out of your own pockets or file for bankruptcy. The minimum property damage requirement is $10,000. When was the last time you bought a car less than $10,000?
Many clients told me over the years that they had “full cover.” It almost always means they had the minimum coverage required by the state.
o Underinsured/Uninsured Motorist. You can add this coverage to your existing coverage if the at-fault party is not insured (“uninsured”), or has insufficient coverage (underinsured). This insurance does not affect the rates of insurance in Nevada. This coverage must be offered by insurance companies in many states when you buy your first insurance policy.
o Med pay. If you are hurt in an accident, this will cover your medical bills up until a certain amount. This coverage is essential, especially if your health insurance does not cover you. This coverage must be offered by insurance companies in certain states. You can also opt out of it.
o Rental Car. This coverage covers the cost of renting a car for up to 30 days if your car becomes unusable after an accident. If you don’t have a backup vehicle, this coverage is vital. If you’re not over 25, I wouldn’t worry about this coverage. Most rental car agreements I’ve seen require that the driver is at least 25.
o Towing. Towing coverage covers the cost to tow your vehicle in case of an accident or other emergency.
These additional coverages can be added for a small monthly fee. Compare the “cheapest” insurance rates to those that include these extra coverages.
Why should you pay more for your insurance?
Many state insurance requirements remain the same despite rising living costs and inflation. In Nevada, for example, the minimum $15,000 bodily injuries coverage requirements has remained nearly unchanged for almost 20 years. $15,000 today is not the same as it was 20 years ago.
Many people don’t buy insurance until they are in an accident. This is when most people realise how much it costs to fix a car and replace personal property. They also need to pay for doctor bills and get compensation for lost wages. You should not wait to make a decision about your insurance.
Consider how much it will cost you to purchase more coverage. Do a premium comparison. The difference in cost of a few dollars per monthly is usually worth it.
As your minimum coverage, I recommend the following: $50,000/$100,000. Bodily injury, $50,000/$100,000. UM/UIM and $5,000 med pay. The following combination will cost you $15,000/$30,000 with no UM/UIM or med pay. You should purchase more coverage if you are willing to lose more.
What should you do to get insurance?
Although insurance agents usually sell insurance, it can also be sold directly. An insurance broker or agent who is able to sell you insurance products can be the best place to purchase insurance. This allows you to compare prices from different companies. If you are looking to compare coverages and prices, I don’t recommend using a captive agent.
An attorney who has handled thousands of insurance cases over the years can tell you it is important that you only buy insurance from reputable companies. Over the years, I have witnessed many insurance companies go under. Because these companies are the types I have seen go under, I would steer clear of insurance carriers that only offer “minimum” policies. I advise you to get as much coverage as possible.
Overall, you’ll be pleased with how much it costs to get better coverage.
Craig Perry is an attorney who has been practicing law in Nevada since 1989. He has been involved in thousands of cases and helped to settle millions of dollars of workers compensation and personal injury claims. His first consultations are free of charge. His bilingual staff includes Spanish-speaking staff and fluent Italian speakers.
