Car Insurance: Are You Truly Covered?

Nickey
February 17, 2013

(US law and issues) Choosing car insurance policies can be challenging. However, the below pointers should make it easier to select the type of coverage required so that you are complying with laws and also have peace of mind.

Compliance

Each state usually requires that all drivers carry a certain amount and type of car insurance on vehicles, whether you’ve had a West Palm Beach accident in Florida or one across the U.S. in Los Angeles, California. An example of basic coverage would be liability. Check with your state to ensure that the policy you choose meets all legal mandates.

Determining Coverage

The first step in choosing the proper car insurance is to determine how much coverage is needed for adequate protection, which often exceeds state requirements. Below are some factors to consider.

1. Gap Insurance and Financed Cars. Autos that are financed usually require full coverage. Ensure that you understand what the financial institution requires so that you do not put your loan or assets at risk. Gap insurance covers car payments for totaled cars in accidents. This is particularly useful when more is owed on the car than could easily be paid off.

2. Liability. The amount of liability coverage that would be adequate depends upon state requirements as well as how many personal assets you need to protect. For example, liability insurance covers repair and property damage costs, as well as medical bills. However, it is usually best to go beyond the minimum requirement so that you are not at risk of being required to pay significant amounts over insurance coverage limits.

3. Collision Insurance. Liability insurance only covers the other vehicle in an accident. This insurance provides that your costs will be covered for repairs and that if the car is totaled, its value will be paid to the policy owner.

4. Comprehensive Insurance. Comprehensive covers theft, weather damage and animal collisions and most other vehicle damage issues. Those with tracking and anti-theft devices installed may need less of this type of coverage.

5. Medical and Personal Injury. Medical costs for car accident injuries can be extensive and even devastating. Regardless of who is found at fault, this protection covers medical bills of the driver and all passengers.

6. Uninsured Motorist. In addition to accounting for people without car insurance, this coverage also compensates for low minimums that may not cover all accident expenses.

7. Road Side Assistance. Breaking down on the road is not only disruptive, but it can be dangerous and costly. This coverage ensures that a mechanic can either repair the car on the spot or tow it to a shop, which can be cost prohibitive otherwise.

8. Teen drivers. Some states require that you have coverage for teen drivers living in the home. Check to find out what your state’s minimum coverage requirements are if this applies.

Consequences of Inadequate Car Insurance Coverage

Drivers in most states found to be without car insurance run the risk of having their vehicles impounded immediately. Additionally, there are usually heavy fines imposed. Worse yet, your driver’s license could be revoked or suspended which can impact your ability to earn a living. The high costs of failure to have proper car insurance coverage can amount to losing other assets like a home, stocks and bonds and other assets to pay all of the costs. Also, it could mean years, if not the rest of your life to make payments.

While deciding upon car insurance coverage can be a daunting task, following the above pointers can make it easier to choose the most suitable plan for your needs and help lessen the risk of liability and the loss of other assets.

Researcher Nickey Williams had to deal with several of these pointers when choosing the best coverage. When having to deal with insurance companies, turn to the knowledgeable West Palm Beach accident attorneys at the Florida firm of Steinger, Iscoe & Greene. They have spent more than a period of ten years defending and warring for the rights of victims and have represented more than 18,000 clients with personal injury suits.