There have been many legal changes regarding insurance in recent years. Auto insurance is currently required in all the states. However, are they amounts the law requires you to have sufficient if you’re involved in an accident or are being sued? Learn more about how you need to be protected.
Types of Auto Insurance Coverage
• Liability Coverage
– This coverage, which includes both bodily injury and property damage, protects you in a lawsuit and pays for certain damages when you’re involved in an at-fault accident. The bodily injury liability (BIL) pays medical bills for individuals involved in an accident where you were at fault. The property damage liability pays for damages you cause to another’s car or property.
• Uninsured/Underinsured Motorist Coverage
– This covers you and your family members if you are injured or your property is damaged by someone who either has no insurance or under insured.
– This pays to have your car repaired when it is damaged because you collided into something.
– This pays for damages when your car was hit by something other a collision such as a deer, hail, wind, trees or other storm damage.
Am I Adequately Protected?
Although the law requires that you carry auto insurance, the amounts they require you to have may not adequately cover in the case of a law suit. For instance, your policy may have coverage that’s listed as 25/50/10. Therefore, in a BIL and property damage case, the insurance will pay up to $25,000 for each person’ injuries and up to $50,000 for the total of everyone injured in the car and up to 10,000 for damage to the other car.
While these amounts may seem like a lot, they’re a “drop in the bucket” when you consider the cost of health care and the high amount of lawsuits seen today. If you’re not adequately covered by your auto insurance and are sued by another, you could lose everything you own If you have property such as a home, it’s important to set higher limits on your personal auto insurance, particularly on the BIL and property damage liability.
What About Deductibles?
Deductibles are the amount you must pay for vehicle damage before the insurance company pays. The higher your deductible, the lower your premiums will be. You have to reach a happy medium. In other words, set a deductible that you can afford to pay, while also keeping your premiums affordable. The purpose of personal auto insurance is to protect you – set limits that will give you protection!