Whether you drive a nice car or a rustbucket, you want to make sure you’re covered in case life gives you or your car lemons, so how much car insurance you really need? |
Basic Coverage Liability, comprehensive and collision coverage are three of the most important kinds of auto insurance you can have. They're the basics - coverage you can’t afford to do without.
Liability coverage doesn’t protect you or your car, but your wallet instead! Should you be in an accident deemed "your fault," liability insurance covers third-party costs you’d have to deal with. It’s a good idea to have at least $500,000 worth of coverage for property damage liability and bodily injury liability. You'll then be covered for costs related to getting the other driver’s car fixed as well as costs if the other driver's hurt if you're at fault.
Whether it’s theft or damage from natural causes, comprehensive coverage will pay to replace or repair your car as long as the damage wasn't due to a collision. This sort of coverage is inexpensive, so you'll want to have it regardless of your car's condition.
No matter who's at fault, collision coverage pays to repair or replace your car if you’re in an accident with another vehicle, an object, or even yourself. Having this form of coverage means you won't have to pay out of pocket for your car's repairs or replacement.
There are extra layers of protection (so to speak) for car insurance, such as:
Medical Expenses Coverage (MedPay)
Even if you don't have health insurance, this form of coverage will cover medical expenses for both parties in a car accident! It doesn't matter who's at fault.
Personal Injury Protection (PIP)
This is like the afore-mentioned coverage but is more comprehensive, has higher coverage limits, and a higher premium.
If PIP isn’t required in your state (it's required in 15 states), you can probably avoid paying for additional medical coverage that could drastically raise your premium.
Guaranteed Auto Protection (GAP)
This coverage is great for new cars because it covers the difference between the amount you owe on your auto loan and what your insurance pays if your vehicle is stolen, damaged, or totaled.
Try to skip GAP insurance wherever you can by purchasing a used car, but if you have a car loan already, just pay it off ASAP.
Uninsured (UM) and Underinsured (UIM) Motorist
Uninsured motorist coverage (UM) only takes care of medical expenses resulting from an uninsured driver, not vehicular damage.
Underinsured Motorist Insurance (UIM) covers you after an accident caused by a driver whose insurance coverage is below the state’s required minimums.
If neither of these is required in your state, it's recommended to leave it out of your coverage.
Everything else past this becomes bells and whistles, so if you're still not sure you can call today to find out how much coverage you need!
Professional Agencies, LLC
440 FM 2821 Rd W, Ste D
Huntsville, TX 77320
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