The most basic type of insurance that a person can get is liability insurance. In most states you are required to have insurance to be able to drive legally on the road. Liability insurance is the most inexpensive type of insurance that will allow you to drive legally. Liability insurance only covers other vehicles and persons in those vehicles if you are in a car accident.
The minimal amount of coverage that is offered through liability insurance is known as the basic limits of liability. While some companies have different minimums the lowest coverage that you can receive is $25,000 worth of property damage and $50,000 worth of bodily injury.
There?s another type of insurance that will allow you to cover your vehicle in the event of an accident called full coverage. If you have a car that you are paying off then you will be required to have full coverage on it until it?s paid off. Full coverage is also handy if you can?t afford to repair your car or buy a new one in the event of an accident. Both full coverage and liability insurance have coverage that range from as little to $25,000 up into millions of dollars in coverage.
By having full coverage and higher coverage limits, you will have less to worry about in the event of a serious accident. In most small accidents basic liability will cover the property damage. However if you get into a serious accident with only the basic limits of liability then you will be liable to pay the difference. Thus it pays to have higher insurance coverage so that you don?t end up owing tens of thousands of dollars in damage and hospital bills.
Your insurance bill will be higher if you increase your coverage. Other big factors on your premium include your age, driving record, and car type. You will usually be able to choose how much coverage you have unless you?re buying a new car. In this case there are certain laws governing the type of coverage and the minimum that you need. The second number in the coverage limits is the bodily injury coverage. This number is usually double what the property damage limit is due to the fact that medical care is much more expensive.
Driving without insurance is risky and illegal in some states. It?s best to have even the basic limits of liability to protect yourself. If you have a newer car then you will want to have better coverage. In most cases you will want to have collision and comprehensive insurance to protect your car in the event of an accident, theft, or bad weather.
Acquiring the right type of insurance for you and your vehicle is important. If you can afford more than basic liability insurance you should take the higher coverage. If you?re unsure about policies and finding the best rates you should check with various insurance agents to help you get the coverage you need.
The minimal amount of coverage that is offered through liability insurance is known as the basic limits of liability. While some companies have different minimums the lowest coverage that you can receive is $25,000 worth of property damage and $50,000 worth of bodily injury.
There?s another type of insurance that will allow you to cover your vehicle in the event of an accident called full coverage. If you have a car that you are paying off then you will be required to have full coverage on it until it?s paid off. Full coverage is also handy if you can?t afford to repair your car or buy a new one in the event of an accident. Both full coverage and liability insurance have coverage that range from as little to $25,000 up into millions of dollars in coverage.
By having full coverage and higher coverage limits, you will have less to worry about in the event of a serious accident. In most small accidents basic liability will cover the property damage. However if you get into a serious accident with only the basic limits of liability then you will be liable to pay the difference. Thus it pays to have higher insurance coverage so that you don?t end up owing tens of thousands of dollars in damage and hospital bills.
Your insurance bill will be higher if you increase your coverage. Other big factors on your premium include your age, driving record, and car type. You will usually be able to choose how much coverage you have unless you?re buying a new car. In this case there are certain laws governing the type of coverage and the minimum that you need. The second number in the coverage limits is the bodily injury coverage. This number is usually double what the property damage limit is due to the fact that medical care is much more expensive.
Driving without insurance is risky and illegal in some states. It?s best to have even the basic limits of liability to protect yourself. If you have a newer car then you will want to have better coverage. In most cases you will want to have collision and comprehensive insurance to protect your car in the event of an accident, theft, or bad weather.
Acquiring the right type of insurance for you and your vehicle is important. If you can afford more than basic liability insurance you should take the higher coverage. If you?re unsure about policies and finding the best rates you should check with various insurance agents to help you get the coverage you need.
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading car insurance portal.
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