Automobile Insurance
Liability:
You are never at a bigger risk of losing your financial stability than when driving your automobile. The potential for accidental injuries is so great that no matter how good a driver you are, it is always possible to have an accident and cause serious injury or even death. This is why purchasing liability insurance and buying the correct amount is so truly important. It is extremely difficult to determine how much liability insurance is sufficient, but increasing insurance amounts is relatively inexpensive, so always consider amounts much higher than you might expect to need. There is no such thing as having too much insurance, but too little can wreak havoc on your life. Find a reasonable balance and discuss it with your insurance professional so that you can be certain that you have provided adequate coverage for both you and your family. Inquire about the advisability of purchasing a Personal Umbrella Policy, which will extend your liability coverage on all of your policies up to $1 million. In some states, $2 million policies are available.
Uninsured/ Underinsured Motorist Coverage:
This is coverage you purchase on your policy in the event a driver who has no liability insurance, or is underinsured, causes you injury. Your policy will pay these expenses. In the event of a driver with no insurance, your policy will pay all of your expenses up to the policy limit. If the other driver had insufficient coverage, your policy would cover the gap between his coverage and your expenses up to the policy limit.
Collision and Comprehensive Coverage:
Collision covers the damage resulting from colliding with another object, regardless of fault.
Comprehensive covers almost any other type of vehicle damage such as theft, fire, glass breakage, wind, hail, or hitting a deer.
There is a time when the value of a vehicle no longer warrants the expense of carrying Collision and Comprehensive coverage. Compare the current value of the vehicle versus the premiums you are paying for this coverage and you will know when it is time to remove them.
Other coverages offered on auto policies include road service and car rental coverage. Towing/road service offers limited dollar amounts as compensation and is usually more of a hassle than using an automobile club. Car rental coverage covers you if your car is damaged and requires extensive repairs. It only provides a specific dollar amount per day, however, and this is for a limited number of days.