Three Things To Consider Before Buying A Minimum Coverage Auto Insurance Policy
Posted on: 7 June 2016
There are minimum insurance requirements for driving a car. For many car owners, all that is needed is a minimum coverage policy. In most cases, this means you will have liability and property damage. In short, you will have coverage for the damage you do to property and personal injury up to a maximum specified by the law. However, before you purchase this type of policy, there are three things you may want to add to a minimum coverage policy.
Uninsured motorist
Although your policy will cover the damage you do, it will not cover the damage the other driver does to your car or to you. If you are at fault, you can simply justify the repair costs as a penalty for your poor driving. If the accident is the other driver's fault, you can always demand the other driver's insurance company pay the repair bill. However, this assumes the other driver has insurance. If not, you will be stuck with the repair bill. This type of insurance is often not expensive to add to your policy, so you should get a quote on the cost.
Coverage for theft
You may think there is no need for theft coverage on your car, especially if the car's value is low, but if it is stolen, you will obviously need to replace it. And make no mistake, cars with low market values are stolen frequently. In many cases, this is because individual parts of the car have value. All cars have a certain value to a car thief, and yours is no exception. What you need to do is get a quote for theft based upon the market value of your car. If you are driving a low priced model, this coverage may not be as high as you might imagine.
Increased coverage for personal injury
You may think that a minimum coverage policy will be enough for your low priced model car, and this may be true. But you need to look at the maximum amount of your policy that will be paid out to anyone you injure in an auto accident. If you have any significant asset that a personal injury attorney could target in a lawsuit, you may want to increase the amount of liability to protect your assets. Just because your insurance policy has a maximum amount of coverage, does not mean an attorney is limited to suing for this amount.
You may think that a minimum coverage policy is sufficient for your car, but the above three types of coverage are worth thinking about. Simply get a few quotes for this additional coverage. You can decide for yourself whether it is worth the cost. Contact a business, such as the Wyatt Insurance Agency, for more information.
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