If you own a vehicle, you will need to carry auto insurance, which is why it is essential to understand the basics of it.
1. States Require Liability Insurance
In most states, you are required to carry a basic level of insurance. The insurance that states require you to carry is liability insurance. With liability insurance, if you get into an accident, you will be able to pay for the damage to the other vehicle and the driver's medical bills. This protects you from getting sued and from your personal assets being seized due to a car accident.
Often, the minimum required insurance is not enough to protect your personal assets fully. Even if you only want to carry the minimum, it is often wise to increase the coverage limits to protect you from a legal standpoint.
2. You Need Additional Coverage To Protect Yourself
If you want to protect yourself, you need to add more than the minimum state requirement to your policy. You will want to carry personal injury protection so that your medical bills and that of your passengers are covered in the event of an accident.
If you want to protect your vehicle, you will need to carry collision insurance, which will protect you if you get into an accident. Comprehensive coverage will protect against non-vehicular damage to your vehicle. In many states, you may want to carry uninsured motorist coverage as well, so your bills are covered if a motorist without insurance hits you.
3. Keeping Insurance Rates Low
There are many ways to keep your insurance rates low. One thing that can help lower your rates is maintain a good driving record. Not getting into accidents and not getting tickets can help you maintain a good driving record. One of the simplest things you can do is within your control to keep your insurance rates low.
Another thing that is within your control is the size of your deductible. By keeping your deductible high, you can lower your premium. Just make sure that your deductible is something that you can afford. Many people like to ensure that they have at least the size of their deductible in their savings account, so if they need to pay out-of-pocket after an accident, they can without incurring any further debt.
Your state's minimum required insurance will protect your liability if you get into an accident with another vehicle. It is often a good idea to carry the minimum required liability insurance to protect yourself from potential lawsuits fully. If you want to protect yourself and your vehicle further, you need to look into adding things, such as personal injury protection, collision, comprehensive, and uninsured motorist coverage to your policy. The best thing you can do to keep your insurance rates low is to maintain a good driving record and carry the highest deductible you can afford.
For more information, contact an insurance agency like Kesner Insurance Agency Inc.