|What kind of insurance do I need for a car?
What kind of insurance do I need for a car? Here’s a quick rundown of the various accountability, consumer, and medical benefits on the automobile insurance landscape.
Always carry senior car insurance. Automobile accidents can result in catastrophic damage to your household vehicle, causing you to be unable to use it. Car coverage protects you in this scenario, allowing you to replace your car after an accident or injury occurs if your homeowner’s insurance does not already meet your needs.
Young drivers should always carry basic auto insurance. Your parent’s insurance can provide you with a driver’s education class and basic liability coverage, but you’ll need to have additional coverage to replace the windshield or windshield wipers. Insurance can vary widely by state and make, so always look before you drive.
Auto liability insurance helps pay for lawsuits resulting from accidents. Many states require car owners to carry auto liability insurance. This generally provides for your own defense in court if a lawsuit arises from your car accident.
Make sure you report your medical expenses! The ultimate disaster would be an uninsured driver hitting a median or overpass and being unable to be helped due to medical expenses—or even worse, being sued by the other party.
In states where medical payment benefits are offered by insurance carriers, you don’t need to provide sufficient evidence to use this coverage. Medical payment benefits generally provide for reimbursement for medical expenses you’re unable to cover through your own insurance. This allows you to pay for primary and preventive health services that may otherwise have been out of your pocket.
Get supportive counseling if you need it, and follow up with your doctor if you feel like you may need specialized services.
Ask your doctor for any mental health services you’re eligible for. Certain diseases, such as posttraumatic stress disorder (PTSD), can be treatable with medication or therapy.
Under federal law, victims of violent crimes are also required to have car insurance to cover their vehicle.
Fill out Protection Plans for your auto coverage. These plans protect you in the event you experience injury or illness—and will help you cover medical expenses should one of those happen to you.
Make sure that your insurance agent is familiar with your state’s injury and illness benefits. You’ll have the opportunity to make a claim with your health insurance carrier via your health insurance provider to help cover these types of injuries and illnesses.
Make sure you notify your insurance agent of any medical emergencies.
The good news is there are some extra benefits available for this coverage. Car insurance companies are willing to offer up to 65% bonus values for two key additional coverage types, extra liability coverage, and consumer protection.
The not-so-good news is that each coverage type comes with its own set of extra protections that haven’t been adequately valued by insurance companies as a whole. Dr. Pete shows you how to assess the total added value of your coverage when determining your claim costs.
What’s with this Extra Liability Coverage?
Pick your jaw up off the floor when you hear the term “extra liability coverage.” Everyone counts the cost of a minor car accident by its potential financial impact on their personal auto insurance policy.
But in reality, 97% of minor accidents are not substantively covered by your personal auto insurance policy. Only the crazy spenders are forced to add millions of dollars to their premiums each year to match injury or death claims.
Instead, insurance companies are required to provide coverage for “tangible” loss, usually in the form of auto parts. In other words, some minor accidents result in the loss of a part, in addition to property damage.
For example, if my vehicle were hit by a tree limb while going down the highway, I would be covered by my personal auto policy for their full value. On the other hand, if that same tree limb were to hit someone else’s car, that person’s personal auto insurance would only cover the part that cuts the tree limb.
If subsequent repairs exceed the value of the original personal auto insurance policy, you’d be out of luck. The other party would have a cheaper and more comprehensive offer on their mind.
Every motorist — whether it’s a friend, acquaintance, or coworker — should carry a basic liability insurance policy with at least $1 million in coverage. That’s the amount that the National Highway Traffic Safety Administration (NHTSA) requires all motor vehicle drivers to carry.
However, that number gets a bit tricky, because many states — as well as many insurance companies — have rules around what counts as “tangible” loss. For example, if my car wrecks into a tree limb while I’m eating dinner outside, I wouldn’t technically be covered for the loss of the tree limb. People get insurance for bodily injuries, but not for broken limbs.
If insurance companies aren’t routinely offering up this extra coverage, you can potentially be giving yourself a competitive advantage by securing higher coverage premiums.