14 Jun Do You Have the Right Level of Auto Insurance Coverage?
All states require drivers to have some level of auto insurance coverage. The coverage you need depends on your state’s requirements, the terms of your vehicle lease or loan, and the value of your assets. If you have too little coverage, you are vulnerable to financial liability. If you are paying for a higher level of coverage than you need, you are wasting money. Keep reading for a simple guide to determining what level of coverage you need.
The Purpose of Car Insurance
Car insurance protects you if you are in an accident by covering the cost of repairing damage to your vehicle, replacing your vehicle, medical bills, and obtaining a rental car while your vehicle undergoes repairs. Car insurance can also protect you financially if you are responsible for injuring someone or damaging their property in an accident. Every state except Virginia and some parts of Alaska require drivers to have liability coverage. Full coverage auto insurance will cover damage to your car, typically up to the market value of your vehicle. Optional coverage can protect you in specific scenarios that may apply depending on where you live, your driving record, and the age of your vehicle.
What Car Insurance Do You Need?
Every driver needs to hold the minimum amount of coverage required in their state. Most states require liability coverage, which doesn’t cover your costs in an accident, but instead pays the cost of other people’s vehicle or property damage and medical bills if you are responsible for the accident. The level of coverage you have indicates your policy’s limits on payouts; for instance, standard policies may pay out $25,000 per person for medical bills and injuries, $50,000 per wreck, and $15,000 for property damage. Any costs over those amounts, and you will have to pay out of pocket.
Full Coverage and Optional Coverage
In addition to liability coverage, you can also opt for full coverage. Full coverage includes liability coverage and collision and comprehensive coverage. Full coverage also pays the cost of repairs to your vehicle or the cost of replacing it if it is totaled in a crash. Regardless of who caused the accident, you will have coverage for vehicle damage. You can also pay for optional auto insurance coverage, such as uninsured motorist coverage. This type of insurance will cover you if someone doesn’t have insurance or doesn’t have enough insurance to cover your car repairs and medical bills. Other types of optional insurance are glass coverage, medical payments coverage, and roadside assistance.
What Level of Car Insurance Do You Need?
How much car insurance do you need? You should consider your net worth and how your assets will be affected if you have to pay out of pocket or face legal consequences after an auto accident. If you don’t have any assets, or if you don’t drive very often, you can get away with purchasing minimal liability coverage.
Insurance Claims for Auto Repairs
At National Auto Collision Centers, we provide major and minor collision repair at our collision centers in Tucson, AZ. We offer free towing and pickup, complimentary loaner vehicles, and comprehensive vehicle repairs and paint and dent repairs. We will also assist you with your insurance claim. To learn more or schedule an appointment, call us today or contact us online.