Cars are not just privileges; they also entail a lot of responsibility.
Vehicles have the potential to be useful investments.
They can also be great liabilities in unfortunate circumstances.
Because of this, most states require car owners to have auto insurance.
Having substantial insurance protects motorists from more financial problems.
The proper coverage will also allow other parties involved to claim payment for any damage done to property.
Most states require drivers to have general car insurance to provide ample security and protection in the event of an accident.
Basic insurance offers the minimum amount allowed by law to cover and expenses.
In most cases, however, repair costs and medical expenses often exceed basic auto insurance limits.
This means that policyholders have to shell out money from their own pockets to supplement the amount shouldered by the insurance companies.
Basic car insurance policies cover physical injuries or death; damage to the vehicles, and of course, a certain degree of liability.
Experts, however, recommend going beyond the requirements mandated by state insurance laws.
Rising medical costs are making it harder for ordinary Americans to shoulder hospital bills in the event of an accident.
As a result, they have to give up personal assets just to settle their dues.
Car repair costs are also covered by general car insurance.
However, the typical amount covered by basic insurance is often never enough.
Repair costs rely on different factors such as the model of the car, the prices of parts, specialized labor, and the availability of replacement parts.
When combined, repair expenses can easily overshadow the amount covered by basic insurance.
To avoid lengthy court proceedings, most states also require car owners to have liability coverage.
Basic insurance policies do offer this, but only up to a certain limit and degree.
This can spell bad news to policyholders if the other parties involved in an accident decide to file for a bigger piece of the pie, so to speak.
While general car insurance may seem enough for car owners on a tight budget, the consequences of relying too much on basic insurance coverage can be dire.
Experts recommend purchasing additional coverage options to augment the protection offered by general car insurance.
Availing of collision and comprehensive coverage effectively protects policyholders from additional financial and legal problems in the future.
While not exactly cheap, these add-ons can mean the difference between saving hundreds of thousands of dollars, and financial failure.