The total amount you spend on a car insurance you need depends on how much coverage you are allowed to get, along with the coverage you need at the time of crisis. Each state has a fixed set of legal requirements for vehicle car insurance, and not meeting them can even land you in jail.
Among others here are the things you should look out for while getting a car insurance:
• Liability coverage – A car insurance policy helps you to cover liability and expenses when you’re at fault in an accident. This cover money will go to the affected person, but it won’t cover the people in your car.
• Bodily Injury Liability (BIL) – This policy pays for the medical charges of the person who has had a collision with you in the accident. Often, you will see BIL policies described as a “20/50” policy or a “100/300” policy. These numbers indicate the maximum amount the policy will pay for one person’s injuries and the maximum for all physical injuries sustained by all the travellers of the other car.
The following policies cover all the things required in an accident:
• Personal Injury Protection (PIP) – This covers yours’ and your passengers’ medical expenses after the accident. If you are not able to work during that time because of your injuries, this policy may or may not cover lost wages as well.
• Uninsured/Underinsured Motorist Coverage – This offers to cover costs in case you are hit by someone who does not have insurance or has minimal coverage.
• Collision – This policy covers all the repairs you car needs after an accident.
• Comprehensive – This policy covers costs in case your car is stolen or damaged, apart from an accident.
Almost all states require car owners to have auto insurance policy, and most states also have required minimum values for different policies. If you do not have the insurance, the state can seize or take your vehicle into legal custody.
Minimum coverage is not necessarily all you should have. For example: New Jersey requires all car owners to have a 15/30/5 liability package. If you’re involved in a serious accident, there are also chances that an individual’s medical expenses could exceed 15,000 Dollars, or a group’s expenses could total more than 30,000 Dollars. In addition, 5,000 DOllars for car repairs isn’t a lot, considering that the average car now costs a little more than 20,000 Dollars.
You can be caught in a bad situation or owe money when costs exceed your coverage limits. That’s why many people prefer to go for policies that cover more than required minimum amount, particularly if they have assets that can be seized to pay for repairs and medical care.
A Wise Advise To All: Make sure you are covered for an amount that is equivalent to the total value of your assets (Take a sum of the values of your house, your car, savings and investments).