Car insurance can be extremely confusing. There’s of course basic coverage and protection to have. There are also additional items and sub limits that you need to be aware of. Not every motorist’s situation will call for additional coverages or higher than minimum protection. However, you never want to guess with insurance coverage. After all, it’s designed to protect your financials in case something unexpected happens.
Here are some of the more common options that you should be considering with your car insurance situation:
Uninsured and Underinsured Car Insurance Coverage
The law says that every driver must have car insurance. Still, there are many people who drive without. Additionally, there are countless more people who are covered but underinsured. These are scary thoughts. What if your car is worth $30,000 and when someone slams into you, you find that their minimum coverage only covers $15,000?
In addition to the other damage that could be caused (hitting a fence, causing damage to a neighboring building or tearing up the yard where one of the cars ends up, just to name a few), you now have someone either with zero car insurance or with the “cut rate” state minimums and they will be responsible to pay all of that money. The chances that it actually happens are slim to none. If it does, you can use the uninsured and underinsured options your policy provides you with to cover any resulting gaps.
Common Exclusions and Barred Drivers
You need to know the specific language of your actual policy to know what it excludes and covers. What if you’re towing a trailer and your policy doesn’t allow coverage on the trailer due to the size? What if you deliver pizzas or drive for Uber and find that your policy doesn’t cover work driving?How about if your roommate needs to back your car out of the drive, and damages another car in the process?
All of these things not only can happen, but they do, each and every day. You have to know that your specific auto policy is not just a guideline. It is actually a legal contract that you are responsible to maintain and follow the directions and agreement within. If you suffer a loss while doing something that’s not covered, you’ll have a vehicle needing repair but no money to do so. Know the specifics ahead of time. Verify that the company you receive a quote from will in fact step up when something goes wrong.
Know What Your Limits Are
It is extremely important to know what is excluded. You also want to know every benefit afforded to you when shopping for new car insurance rates. There are many cool sites out there that can provide comparisons. Something like this can be helpful so that you’re getting equivalent information.
What if your limits do include the perks like rental reimbursement and towing after a collision? Do your limits include lost wages if you can’t work? What about the coverage for your passengers that are inside the vehicle? Some people think that every car insurance option is exactly the same. But there are so many options offered that if you don’t know the particulars, you could have a big problem.
Knowing the amount of car insurance you pay as well as the amount of coverage you have are essential to know. Other pertinent information still lies within. Drivers need to know that their vehicle and their financial assets (as well as their health) will be protected in case something does happen and an accident does occur. By taking the time to thoroughly quote auto insurance with a provider that knows their stuff, you have a much better shot of being covered in the worst-case scenario of an auto accident.