Right auto insurance means the recommended coverage, which is affordable and protects the insured driver’s interests in the value of owned autos, pays for medical expenses when injuries occur and covers an insured legal liability against the auto accidents and is in line with the state laws.
Personal Bodily Injury CoverageThe best way to protect you from probable injuries is to purchase a medical or health insurance policy. In general, people might already have one for them and their family through their employer. Auto insurance policies usually do not provide much medical coverage for the policyholders, for example, $5,000 maximum for the policyholder; not to be confused with liability coverage that provides (up to the policy limits) bodily injury coverage for injuries to others for which the policyholder is found liable as a result of an automobile accident.
To be protected in case if you were to be found liable for someone else's injuries or property damage, you should consider purchasing liability protection more than the minimum requirements of the state that is suitable to your needs. Keep in mind that you may be able to raise the coverage limits substantially for a small additional premium.
Liability Coverage is required by the state laws for all registered autos. However the minimum/maximum required liability limits depend on your State's laws. Fro example, California requires that your liability coverage includes a minimum of $15,000 of bodily injury coverage per person, $30,000 bodily injury coverage as a total per accident, and $5,000 of property damage coverage.
It should be kept in mind that the minimum liability coverage may satisfy state laws, however it may not be suitable for your needs. You must be aware that any injury or property damage as a result of an accident in excess of your liability coverage limits may not be compensated and may leave you responsible for paying them out of your pocket. Raising your liability limits can help you to protect your assets against liability lawsuits.
The recommended higher limits of liability are $150,000 bodily injury coverage per person / $300,000 bodily injury coverage per accident and $10,000 property damage. The liability coverage could also be as per the state law. It is always better to discuss with the insurance agent and fix the limits of the liability coverage so as to protect your assets.
Uninsured Motorist Coverage
Uninsured motorists coverage not only protects you against the "Uninsured motorist" the driver without auto insurance, but also against the "Under insured motorist", the driver with insufficient auto insurance. Though, uninsured motorist coverage is optional, it is recommended that it be added to your policy in your best interest. The limits of Uninsured Motorist Coverage can vary, however; it usually cannot exceed your liability insurance limits. The cost for this coverage is fairly inexpensive.
Comprehensive and Collision Coverage If you want coverage to your vehicles in case of theft, fire, vandalism, collision with animals, windstorms, flying objects, hail, broken windows, and at fault auto accidents, then you need a Comprehensive and Collision Coverage. Cost for this type of coverage is higher and it depends upon your vehicle and where you live.
Rental Car Coverage Most of insurance companies offer rental car reimbursement. Some insurance companies offer rental car coverage for as little as $2 per month. This type of coverage is inexpensive. An auto insurance policy cannot prevent automobile accidents from happening, but it sure can help you offset some of the financial loss or burden that might result from an accident.
All the above factors will give you a fair idea on how to determine “How Much Auto Car Insurance is Right” while buying auto insurance.