Friday, January 13, 2017, AM | Leave Comment
Car insurance is mandated in most states, but the level of coverage you decide to purchase depends entirely on your individual needs.
Having kids can change your situation a lot.
Purchasing a car insurance policy without knowing what the types of coverage are is a recipe for having too little or too much coverage for your needs.
You’ll want to investigate various coverage to determine the types of car insurance you’ll need with kids.
Here are some tips all families should know before making their decision.
Liability insurance is very basic and covers you if you are in an automobile accident where you are deemed to be at fault. It pays for property damage and medical expenses due to injuries to the other party.
Most states establish a minimum amount of liability coverage you must pay, but it’s wise to purchase a policy with higher limits to give yourself added protection against claims that exceed your policy’s limit.
Personal Injury Protection (PIP)
Personal injury protection is a necessity with any car insurance policy. This pays for medical expenses that you and your passengers incur if you are victims of a car crash, regardless of who is determined to be at fault.
Medical expenses add up quickly, especially if a serious accident occurs or several people get hurt.
Collision coverage pays for property damage to your vehicle in accidents where you are at-fault.
If you total your car, insurance will send you a check for what they deem to be the value of your car.
Collision coverage includes a deductible, which is how much of the expenses you’re responsible for before insurance will cover the bill.
For example, if you have a $500 deductible and get into an accident with repairs that cost $1,700, you’ll pay the first $500 and your car insurance policy will cover the remaining balance of $1,200.
Comprehensive coverage protects your car from the elements, such as damage from a hail storm, hitting a deer, or a tree falling on your car during a storm.
It is also required if you want to file a claim for theft. Comprehensive and collision coverage are usually purchased together to protect your vehicle from all types of risks.
Uninsured/Underinsured Motorist Protection
Each state requiring car insurance isn’t always enough protection. The basic limits are typically low and might not cover all damage done to your vehicle.
If someone is responsible for an accident and does not have adequate coverage, this protection pays for expenses above their policy limits.
Without this, you might end up seeking out an injury lawyer to cover expenses if you’re hurt.
Car insurance is a necessity to protect yourself, your children, and your property in the unfortunate event that an accident occurs. Ensure you purchase a policy that meets all your insurance needs.
Eileen O’Shanassy is a freelance writer and blogger based out of Flagstaff, AZ. She writes on a variety of topics and loves to research and write. She enjoys baking, biking, and kayaking. Check out her Twitter @eileenoshanassy.