Dangers of Liability Only Car Insurance

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When it comes to automobile insurance, every state requires some type of liability coverage in order to register the vehicle. Some states also require some type of collision or uninsured/underinsured coverage. If you still owe money on it, the lending institution will require you have collision protection on the car too; to protect their investment. Other than that, having only liability is what many car owners have on their car because they do not understand what it means to have other coverage except it will cost more.

Collision Coverage

If you are in an accident and the other person is found to be at fault, their insurance will pay to have your car fixed. If they have no insurance or you are at fault you will have to pay for the repairs. You may think your vehicle is not worth much money so why worry about collision coverage but the truth is, could you replace your car if it was not working anymore due to an accident? It is not only the look of the car that is covered under collision protection, it is its ability to run. It could be hard to get to work when you have no running vehicle.

Personal Injury Protection

Medical bills can be astronomical. Even if the other party was at fault and they have insurance, if you suffered major injury, their insurance is probably not going to be enough to pay all your medical expenses. If you were at fault and you do not have personal injury protection, anything that happened to you will not be covered. Your passengers will be, but not you as the driver.

Uninsured/Underinsured Coverage

Just because the law mandates that every registered motor vehicle has insurance coverage does not mean they all do. Unfortunately, a lot of people let their insurance lapse once they have the car registered. If this is the case, it does not matter who is at fault in the accident, if you do not have uninsured coverage all the expense from the accident that you acquire you will have to pay. This includes medical bills and damage to your vehicle. When you have underinsured motorist coverage, it comes into play when the other driver’s coverage runs out. This helps keep you from having to pay out of pocket.

Other Coverages

One thing you should seriously consider when taking out your insurance policy is taking out more than the state requires. Even though you have insurance, if your policy does not cover all the expenses that are created by the accident and you are at fault, you can be sued. While it may seem like they cannot get any money from you because you do not have any, they can find ways to make you pay at least part of it. Your tax refund and wages can be garnished if you cannot pay. Having to pay a higher premium is more than worth having to sell your home or being in debt for the rest of your life.

Insurance may seem like an unnecessary expense at times, but when you do need it, you want to have the best coverage possible.