What’s the recommended car insurance coverage? It depends on who you ask. Many drivers believe that the “whole of auto insurance” coverage is important, while others prefer just liability or collision. Many people believe that if they have an older car that is totaled in a wreck, they’ll get their claim paid for regardless of who was at fault. And, of course, all drivers want to make sure that their dependents will be adequately covered should they be involved in an accident.
So what’s the recommended car insurance coverage? According to experts, the most common policy for new drivers is liability and collision. Liability coverage pays for medical expenses and property damage sustained by you and your passengers in a wreck caused by the negligence or wrongdoing of another driver. Collision coverage pays to repair or replace your vehicle if it’s damaged in an accident. Comprehensive coverage is basically a “bag of groceries.” It covers your vehicle in the event you are not able to pay for it on your own.
The next thing you should ask yourself when searching for the best recommended car insurance coverage is the difference between bodily injury liability and bodily injury and property damage liability. You can see from the above quotes that there are significant differences between these two policies. The former pays for hospital expenses and pain and suffering, while the latter does not. Blemishes that occur to your vehicle in an accident will also count toward your claim under bodily injury liability, but it counts separately from the claim for bodily injury liability. (Learn more about bodily injury liability in our next article.)
The third item on your list of recommended car insurance coverage items is uninsured or underinsured motorists. The former pays for the medical expenses and damages incurred by you in the event you are in an accident with an uninsured driver. You must pay this deductible as it will be applied to your claim. The latter protects you if you are in an accident with a driver who is either uninsured or does not have sufficient insurance to cover the repair or replacement of your car. While the latter is often times the cheapest car insurance available, it’s also important to note that it doesn’t cover your passengers or anyone else in your vehicle.
If you are in an accident with a driver who has uninsured or underinsured motorist coverage, the cost of your repair or replacement will be paid for by the liable party. Therefore, it’s important to understand how much coverage you’re paying for. You can learn more about uninsured motorist limits and liability limits by contacting an auto insurance agent.
The fourth item, we’re going to discuss is the collision and comprehensive part of car insurance coverage. This portion of your policy covers your car in case you’re involved in a major accident. Major accidents include collisions with another vehicle, collisions with other cars, vandalism, and physical damage due to fire, hail, or weather. These are some of the most common types of incidents that cause major damage to automobiles and will also result in the highest premiums.
Finally, let’s talk about bodily injury liability protection. Bodily injury liability provides protection for those individuals that suffer injuries while operating a vehicle. For example, if you or a passenger in your car is injured in an accident, you may be eligible to receive compensation for personal injury. Because bodily injury liability is intended to provide protection for specific groups of drivers, it varies from state to state.
One policy that will pay medical bills for you and your passengers in the event of an accident is called catastrophic medical coverage. This type of coverage pays your medical bills up to a certain amount, depending on the coverage that you have chosen. For example, one policy might offer you and your passengers coverage that pay 100% of your medical bills, while another might only offer you a portion. If you have extensive health insurance, the cost of catastrophic policies for your health insurance may be included in your policy. In addition, this type of coverage pays your funeral expenses, but will not pay your creditors or repair costs for your car. If you do not have this type of health insurance, you can purchase additional life or term life insurance, which covers you financially even after you die.