Auto Insurance: what it means having one?
Should you have an auto accident or otherwise suffer damage to your vehicle, auto insurance provides you and your family and other involved individuals financial protection?
Today, there are state minimum insurance requirements. These are car insurance requirements set by each state’s law that dictate how much auto insurance residents of a state must maintain to lawfully drive a car. These requirements vary greatly from state to state. You can contact the insurance commissioner for your specific state to determine the minimum insurance requirement in your area. However, do keep in mind that the state minimum insurance requirement doesn’t mean that you’ll be fully covered or free from all liability should you get into an auto accident. Also keep in mind that when you drive outside your residency state and into another state, it may be that you assume that state’s minimum insurance requirement.
Auto insurance policies can vary greatly, but most will protect you on six different fronts:
1. Uninsured and Underinsured Motorist Coverage - Vehicle owners in a few states are able to get around their state’s minimum insurance requirements by cash bond or other form of financial security, but, for the most part, drivers are required by law to have some degree of auto insurance. That said, just because a state requires a certain amount of insurance doesn’t mean that all drivers abide. This means that you’ll likely to be left to flip all or most of the bill if you or someone with permission to drive your vehicle has an auto accident as a result of another driver that isn’t insured or is underinsured. Uninsured and underinsured motorist coverage protects you against such a scenario.
2. Property Damage Liability - This is to protect you and anyone you allow to use your vehicle when your vehicle does damage to another person’s property in an accident. By property, this could be the other person’s fence, house, car, etc.. Remember, other vehicles aren’t the only things in the path of your car!
3. Personal Injury Protection / Medical Payments - Most drivers are likely to have someone else in their vehicle at some point or another. These passengers can be injured in auto accident just like you and other drivers. Should a passenger be injured and need medical attention, be unable to work, or die, then personal injury protection within your policy will cover medical expenses, loss of earnings death benefits, funeral expenses, etc.. up to the policy’s set limits.
4. Bodily Injury Liability - You can be sued for injury damages you cause beyond the limits of your policy. Bodily injury liability covers injuries caused by you or someone you allow to drive your vehicle when said injuries exceed those covered on your standard policy.
5. Comprehensive - There are instances that your vehicle may not be damaged as the result of a collision with another driver. Some example of such instances would be theft, glass damage, fire, fallen trees, collision with an animal, and such. Since comprehensive policies vary from state to state, be sure to ask for a complete list of what types of non-vehicle collision incidents are covered before committing to a comprehensive policy.
6. Collision - Of course, what insurance policy would be complete without coverage for a collision with another vehicle~ Most collision policies include a deductible, or amount that you, as the policy holder, will pay for the damage caused by any accident you were at fault in causing. The deductible amount you’re responsible for paying will need to be paid before your insurer will pay their part.
The language in auto insurance policies can be confusing, and it can often be difficult for drivers to understand how much and of what type coverage they need for their own protection. Throw in state laws and insurance laws and auto insurance is really discombobulating. Espanol Seguros can help you make sense of it all, connect you with a local auto insurance agent who can assist you in getting the best, most affordable coverage for your individual needs.