What is a Car Insurance?
This is insurance which protects the insured against losses involving the use of automobiles. Various coverages may be bought depending on the desires of the insured. Such coverages include the liability coverages of bodily injury, property damage, and medical payments, and the physical damage coverages of collision and comprehensive.
Why do I need it?
In some states, to drive (get license plates) you must carry:
Liability coverage to pay for losses you cause others, or:
No-fault coverage to pay you and your passengers for medical and related expenses caused by injuries from a car accident, regardless of fault, or
Both coverages.
Even in states where coverage isn’t required, drivers must, by law, be able to pay for losses they may cause others. Having insurance is the simplest way for most people to comply. Coverage for vehicle damage usually is necessary to finance a car.
Without insurance, you risk paying for the full cost of:
Any harm you cause others, or:
Repairing or replacing your car if it’s damaged or stole
How much do I need?
How high should my liability coverage limits be?
No one can predict exactly how much you would have to pay if you were to cause an accident. Ask yourself how you would pay for any damages exceeding your coverage limits. The higher your limits are, the more likely your policy will be able to pay all of the damages.
How high or low should my collision and comprehensive deductibles be?
Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a loss occurs. Ask yourself how much you are willing to pay in order to save on premium.
Should I carry collision and comprehensive coverage?
You may be required to carry collision or comprehensive coverage if your vehicle is leased or financed. As your car's value decreases, you might consider dropping these coverages and pocketing the savings on premiums. Consider, though, if the savings are enough to offset the risk of footing the entire cost of repairing or replacing the vehicle.
This is insurance which protects the insured against losses involving the use of automobiles. Various coverages may be bought depending on the desires of the insured. Such coverages include the liability coverages of bodily injury, property damage, and medical payments, and the physical damage coverages of collision and comprehensive.
Why do I need it?
In some states, to drive (get license plates) you must carry:
Liability coverage to pay for losses you cause others, or:
No-fault coverage to pay you and your passengers for medical and related expenses caused by injuries from a car accident, regardless of fault, or
Both coverages.
Even in states where coverage isn’t required, drivers must, by law, be able to pay for losses they may cause others. Having insurance is the simplest way for most people to comply. Coverage for vehicle damage usually is necessary to finance a car.
Without insurance, you risk paying for the full cost of:
Any harm you cause others, or:
Repairing or replacing your car if it’s damaged or stole
How much do I need?
How high should my liability coverage limits be?
No one can predict exactly how much you would have to pay if you were to cause an accident. Ask yourself how you would pay for any damages exceeding your coverage limits. The higher your limits are, the more likely your policy will be able to pay all of the damages.
How high or low should my collision and comprehensive deductibles be?
Higher deductibles lower your premium but increase the amount you must pay out of your own pocket if a loss occurs. Ask yourself how much you are willing to pay in order to save on premium.
Should I carry collision and comprehensive coverage?
You may be required to carry collision or comprehensive coverage if your vehicle is leased or financed. As your car's value decreases, you might consider dropping these coverages and pocketing the savings on premiums. Consider, though, if the savings are enough to offset the risk of footing the entire cost of repairing or replacing the vehicle.
No comments:
Post a Comment