Understanding Insurance Issues

Important Basics To Understand About Car Insurance

If you have a vehicle, you probably know that you need to carry car insurance on your vehicle. However, it is important for you to not just carry car insurance, but for you to understand how it works. Understanding how your coverage works will allow you to protect yourself and get the most from your insurance at the same time.

Basic #1: State Coverage is Only the Minimum

In most states, you are required to carry a minimum level of coverage. This minimum level of coverage is generally designed to protect you from a liability standpoint. If you get into an accident, and it is determined that you are at fault, minimum insurance coverage is designed to cover damage and medical bills for the party that you hit.

In general, minimum coverage doesn't provide you with money to fix up your vehicle or take care of your medical bills. You need to go beyond the minimum if you want to be covered for those things as well.

Basic #2: Increase Your Personal Liability Coverage

If there is one part of your coverage that you should increase, it is your personal liability coverage, which is also sometimes referred to as personal injury coverage. This is the money that your insurance provider will pay towards your medical bills.

If you don't have health insurance, or you have health insurance with a hefty premium, you should greatly increase your personal liability coverage. Medical care, not car repairs, is generally the most expensive side of getting into a serious vehicular accident.

Basic #3: Understand the Extras

There are a lot of extras that you can add to your car insurance coverage that can really help you out, depending on your situation. You don't need every extra or additional coverage option, but it is important to understand the different extras you can get and how they can help you.

For example, roadside assistance is a popular extra that only generals add a few dollars a month onto your premium. With roadside assistance, you don't have to pay for a tow truck or help if your tire goes flat, your car has a mechanical issue, or if your battery dies.

Another great extra is car rental coverage. If you get into an accident, your insurance provider will cover the cost of a rental vehicle while your vehicle is getting fixed or you shop for a new one.

If you have a car loan, gap coverage is a must. It will help ensure you have the money to pay off your car loan if your vehicle is totaled, even if the value of your car is below the value of your loan.

There are just a few of the extras that you can add onto your insurance coverage.

When it comes to car insurance coverage, the minimum insurance you are required to carry by most states covers the driver you hit, not you. You need to increase your personal liability coverage so the bills of you and your passengers are covered in an accident. Make sure you understand all the optional extras you can add to your coverage, as these extras are often really affordable and can provide you with great value. Contact someone like AAC Insurance Group for more valuable information.