The Auto Insurance You Need for the 21st Century

Auto insurance is not the same prospect that it once was. It used to be necessary only to have insurance on your vehicle in case you had an accident. This is still legally true in most states. However, in the 21st century you need more coverage that the legally required minimums. If you do not have the right coverage, you could be left unprotected.

First, if you are leasing or making payments on a vehicle, the lender usually requires that you carry minimum full coverage insurance on your vehicle. This typically includes a bit higher limits for liability coverage, as well as lower limits for uninsured motorist and other accidents that are not your fault. This coverage is required because it protects the lender in the case that anything happens to the vehicle. If you are in any type of accident, the insurance will pay for the car so that you don’t have to worry about your credit or paying for something you don’t have anymore.

However, there are other reasons why you want to have additional auto insurance coverage. One of the things you need to keep in mind is uninsured motorist coverage. Even though insurance is legally required in most every state, many people do not carry insurance on their vehicles. There are many reasons for this, but usually it is simply the fact that people cannot afford insurance but drive around anyway. This puts you at considerable risk. While it is not legally required to have coverage for an uninsured motorist, it is in your best interests. Without this coverage, there is a high chance that you could be in an accident and have to pay for your car and your medical bills out of pocket.

Another thing to keep in mind is that you really need additional coverage above and beyond the state required minimums. The state required minimums usually only cover about thirty thousand dollars per accident, and only five thousand dollars per person involved for medical. In the average wreck and with potential injuries and the high cost of medical treatment, five grand just may not be enough. You will still be responsible for covering those expenses, even if your insurance caps out. So it is a good idea to have higher coverage limits on liability insurance. In addition, if you do not have full coverage insurance and you cause an accident, you will have to pay for your own medical bills out of pocket, which can get extremely expensive.

Full collision insurance is also a good thing to have. Many people have accidents every day that do not involve another vehicle. When this occurs, you will not be covered unless you have full coverage collision insurance. This is especially important in the winter when there is an increased chance of slipping and sliding on the ice and hitting a stationary object. You will want to make sure that the coverage you get covers both the vehicle and medical. All in all, it is important that you have enough auto insurance coverage so that you do not wind up paying expenses out of pocket.

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