Do You Have the Right Car Insurance Coverage?
The United States driver safety initiative Asirt.org estimates that approximately 1.3 million people die in fatal car accidents every year, and even more (an estimated 50 million) are injured or incapacitated as a result of car accidents. How high do you think the number is for drivers who only damage their cars? It’s even higher.
Considering this, you should know that you can’t be without car insurance. What most people never stop to think about is the fact that even though they have basic car insurance, they might not be adequately insured for their needs, and this can put you at further risk.
If you’re insured, do you know just what your insurance will cover if an accident happens? Do you know if your insurance covers third-party drivers or any damages that your car might sustain from a natural disaster event? If you don’t know the answer to these questions, then it’s time you call up your insurer and ask.
Here’s how to make sure that you have the right car insurance, and more about what can happen if you don’t.
The Different Types of Car Insurance
Did you know that there are different types of car insurance, each applying to a different need of insurance? Most people aren’t generally insured against all damages, and it’s surprising that most people simply don’t know this when they insure their cars.
If you’re not sure what kind of insurance you have right now, or you’re about to sign up and don’t know what they company is going to cover if an accident should happen, then it’s time to give your insurance company a call and double check the facts.
- Liability Coverage: Liability coverage is a type of insurance that’s compulsory in most states, and it protects you if a lawsuit or claim is ever brought against your policy in the event of an accident; sometimes accidents happen in very strange ways, and this covers any property damage that might be claimed for in the process—like a wall that you drove through by accident.
- Underinsured Coverage: Underinsured coverage protects you and your insurance policy if you are ever in an accident with someone who isn’t properly insured to cover your damage; this can cost you thousands if you aren’t insured properly.
- Comprehensive Coverage: Comprehensive coverage is a good idea to have if you’re insuring a family car, or insuring someone else under your insurance policy. It’s even a good idea to get comprehensive coverage if you spend a lot of time on the road or if this is your first vehicle—both can be a risk that you want to be insured for.
- Collision Coverage: The use of collision coverage is pretty obvious, and you can probably guess what it is, but most people don’t know whether or not they have collision coverage at all. You should ask your insurer just in case you are involved in an accident, even a small one, where repair costs need to be claimed from any insurer.
- Personal Injury Coverage: Personal injury coverage and medical payments coverage are the two kinds of coverage that are essential to protect more than your vehicle: they protect the driver, the passengers, and any third-parties (including other drivers on the road and pedestrians) against claims and medical costs if an accident were to take place. Most people never think of it until they need it and don’t have it.
Most people think that car insurance is car insurance, and that’s just not true. Have you double-checked with your insurer to make sure what you’re covered for yet?
Speaking to Your Insurer
You have the right to ask your insurance company questions and there’s no such thing as a stupid question when it comes to safety and your vehicle, so ask away. If you find that your insurance company is unwilling to answer your questions, it’s a good reason to switch to another insurance company entirely.
Again, ask your insurance provider what you’re covered for—ask them to fill in the gaps for you; or find an insurer who will.
Other reasons to change your insurance company include skyrocketing premiums that you can no longer afford, or terrible reviews coming from other customers. A sudden drop in share prices is also generally a bad sign for an insurance company and means that you should think again.