Everyone Needs Auto Insurance Coverage
When you have a vehicle, it is against the law in any state to drive it without auto insurance coverage.
And you need to know just how much insurance is required by law for your particular state.
For example, in California, the minimum liability insurance you need is $15,000 for the bodily injury of the other people involved in the accident.
And $30,000 is this policy limit, which means that two persons involved in the accident will be covered up to $15,000 each.
You need to know what limits make sense for your particular situation.
If you own a house, you will want more coverage on your auto insurance, so that if the other people are injured more severely than what your coverage will allow, they will not be able to sue you for your home.
If you policy reads something like 100/300/100, this means that up to $100,000 will cover each person involved in the accident.
The 300 means that it will cover up to $300,000 for the accident.
And the last 100 is $100,000 coverage for the property of the other person involved.
If you have a brand new car and you are still paying a bank for it, you will want to have collision insurance, as well.
Most banks will require it, as long as they have the title for it.
That is because new cars are very expensive to repair.
A simple fender bender could cause hundreds of dollars in repairs.
So, if it is totaled, this should be completely covered with your insurance.
Comprehensive coverage is also an option.
This covers, fire, theft, or other damages for your own car.
You would need this, for example, if you run into a deer on the road.
This damage could be extensive, and it is good additional coverage to have.
You will also have a deductible, so be sure that you can come up with it, in case you do get into an accident.
Your deductible will also change the amount of your premium.
For example, if your deductible is only $250, your monthly payments will be higher, as the insurance company will cover everything over that.
If your deductible is $1,000, you will pay less to the insurance company, but be sure you have the funds available for this.
Like anything else, you need to think about what type of auto insurance coverage is best for you and your situation, according to your vehicle, and according to your financial status.
And you need to know just how much insurance is required by law for your particular state.
For example, in California, the minimum liability insurance you need is $15,000 for the bodily injury of the other people involved in the accident.
And $30,000 is this policy limit, which means that two persons involved in the accident will be covered up to $15,000 each.
You need to know what limits make sense for your particular situation.
If you own a house, you will want more coverage on your auto insurance, so that if the other people are injured more severely than what your coverage will allow, they will not be able to sue you for your home.
If you policy reads something like 100/300/100, this means that up to $100,000 will cover each person involved in the accident.
The 300 means that it will cover up to $300,000 for the accident.
And the last 100 is $100,000 coverage for the property of the other person involved.
If you have a brand new car and you are still paying a bank for it, you will want to have collision insurance, as well.
Most banks will require it, as long as they have the title for it.
That is because new cars are very expensive to repair.
A simple fender bender could cause hundreds of dollars in repairs.
So, if it is totaled, this should be completely covered with your insurance.
Comprehensive coverage is also an option.
This covers, fire, theft, or other damages for your own car.
You would need this, for example, if you run into a deer on the road.
This damage could be extensive, and it is good additional coverage to have.
You will also have a deductible, so be sure that you can come up with it, in case you do get into an accident.
Your deductible will also change the amount of your premium.
For example, if your deductible is only $250, your monthly payments will be higher, as the insurance company will cover everything over that.
If your deductible is $1,000, you will pay less to the insurance company, but be sure you have the funds available for this.
Like anything else, you need to think about what type of auto insurance coverage is best for you and your situation, according to your vehicle, and according to your financial status.
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