How Should A Car Owner Approach The Task of Selecting The Best Car Insurance?

Drivers are expected to carry proof of insurance. Car owners must have such proof of financial backing in order to register their insured vehicle.

One type of car insurance is mandatory: Minimum liability coverage

That covers the expenses created by any injury to the other driver or to the passengers. In addition, it covers the cost for repairs to the other driver’s property. It does not cover the expenses that would be created by an injury to the driver of the insured vehicle.

Car owners that purchase only minimum liability coverage should not expect to be reimbursed for more than $15,000 to $20,000 of medical costs for each injured person. By the same token, such car owners should not expect to receive more than $40,000 to $50,000, in terms of overall coverage.

Additional options that are available to buyers of car insurance

• Collision: That pays for repairs to the insured vehicle, unless an animal has hit it.
• Comprehensive: That pays for damage to vehicles that did not have a driver, or to those that were hit by an animal.
• Uninsured or underinsured motorist coverage: That protects the insured car owner against the possible financial consequences that would arise, after colliding with an uninsured or an underinsured motorist.
• PIP: no-fault insurance; this provides medical protection for the driver and passengers; this ensures payment, regardless of who caused the accident.
• Med payments: These cover a shorter list of medical expenses
• Gap coverage: This covers the difference that could be owned to the dealer or lender, if a leased car, or one that was purchased with a loan, were to become involved in an accident.

What consumers should consider before buying any type of insurance, beyond the minimum?

The personal injury lawyers in Carol Stream recommends that the vehicle’s owner should study what options he or she can afford to buy. Has the owner budgeted for the money that would be spent on a given option?

How much money is the owner spending on the insured vehicle? It does not make much sense to spend a lot of money to insure an inexpensive set-of-wheels.

What are the rules in the owner’s state, with respect to required car insurance options? Some states expect all drivers to carry the no-fault option. Some expect drivers to carry the uninsured motorist or the underinsured motorist option.

In addition to deciding what type of insurance to buy, a vehicle’s owner should also give thought to when it makes sense to buy the selected policy/option. Smart owners make that purchase before the chosen vehicle has been taken from the dealership. That avoids the consequences, if a new set-of-wheels were to become involved in a collision soon after it being taken from the lot where it had been purchased.

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