Many people see auto insurance as a necessary evil. The monthly insurance payments, if you have never had an accident, especially, seems to be a waste of money. But if you have a claim, car insurance can be a financial lifesaver. Moreover - and this is not a small detail - Auto insurance is required by law.
It's the age old question: If you are required to have car insurance, exactly how much you need and what kind of coverage you should buy?
To help you, we have a practical guide prepared to help you identify the type of insurance and the amount of coverage, the. Right for you All this information will be useful to know when it comes to getting a car insurance quote comes.
Auto Liability Insurance - The Basics
Let's start with the basics. Liability insurance protects the person in an accident affected your fault. It is divided into three figures that represent dollar amounts for three types of liabilities. For example, if you purchased a political responsibility of 25/50/15, you would have $ 25,000 injured injury coverage a person in an accident, for all $ 50,000 bodily injury coverage in an injured accident and $ 15,000 coverage for property damage.
the amount of liability you determine depends on two main factors need.
The first factor, the legal minimum coverage by the state is necessary, in which he lives. In some cases, there is no minimum amount. It is important to remember that each state has its own criteria, ask your insurance company what is necessary for your condition.
The next factor is dependent on your financial situation. If you cause an accident injured and someone, but the responsibility does not cover all your medical expenses, most likely - and lawyer - follow for the rest of the amount. It is suggested that if you are a source of income for higher wages, actively support a business owner or you should higher limits have compared to someone who does not own their own home, someone, a substantial real assets or a person whose income less. For ideas on how to finance your policy, read our article on 10 ways to save money on car insurance.
Conclusion: If you have the finances and asset protection, opt for reporting more responsibility represents.
The decision on the injury protection (PIP)
Briefly, breaches you and your family members in case of injury covered in an accident. People who currently have health insurance for themselves and their families decide to usually from some wounds of your auto insurance, unless otherwise provided by the state in which they live. Be sure to ask your provider what the wounds are requirements in your state.
Conclusion: If you have health insurance for you and your family injury reporting are not usually necessary, unless your condition tells you otherwise.
A lesson of complete and collision coverage
If you just rent a car or have a car loan, have the proper authorization, a comprehensive and collision coverage. All risks that are not to your car accident injuries such as those related by fire, flood or hail. Collision covers damage to your vehicle by collisions with other vehicles or objects.
If you have an old vehicle flat, you may not need full and collision. Generally considered to leave when the annual cost of more than 10 percent of the current value of the car is. Also keep in mind that the type of car driving can affect your car insurance thinking; new cars or cars that are stolen more could justify a higher premium. Read our article on most cars and less expensive to provide more information.
Conclusion: If your old car is worth $ 4000 to the sample, and its comprehensive coverage of costs and shocks are more than 400 $ per year, you probably do not need them.
Medical payments coverage
At first glance, the coverage of medical payments and personal injury protection (PIP) is almost identical. However, medical costs coverage begins where injury ends protection. For example, if medical expenses for the driver or passengers, the amount of PIP exceed covered, cover the medical expenses would be used to pay a portion or all of the remaining costs, depending on the amount of political coverage.
This is especially important in states where PIP covers only a certain percentage of the medical costs in general. If only 80 percent is covered, this means that the policyholder is on the hook for the remaining coverage 20. As such, medical payments adds an extra layer of protection for the insured, especially when it comes to cause serious injury.
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