Auto Insurance Coverage - Learning from other’s mistakes.
A few years back, having auto insurance was not mandatory. Nowadays, most countries require drivers to maintain their vehicles insured with at least liability coverage, which provides bodily injury and property damage protection for others if you are found liable.
Before insuring your vehicles was mandatory, consumers who did have their vehicles insured purchased auto insurance not because it was a requirement, but because they wanted to protect themselves in case of an accident.
A large percentage of consumers purchase liability auto insurance coverage only because it is a legal requirement. Most likely, those consumers wouldn’t insure their vehicles if it wasn’t a law.
Many do not consider the real value of auto insurance until they have a bad experience. Most insurance agents have experienced the customer who purchases the most basic coverage on their vehicle and then wrecks it and regrets not purchasing higher coverage. After learning an expensive lesson the hard way, next time they’re sure to purchase the needed coverage so that they don’t make the same mistake twice.
Purchasing the right coverage is definitely worth it although it costs more than just going with the state requirements. When you buy liability coverage only, realize that there is no coverage for your vehicle in case of an at-fault accident and sometimes even if you’re involved in a non-fault accident.
As an example, say you were driving around in your Rs.10,00,000 vehicle with liability coverage only and someone else rear-ends you while you’re stopped at a red light. Obviously it wasn’t your fault and the other person’s policy will cover your vehicle right? Not right! What if that person did not have car insurance? Who will fix your car then?
One must consider all possibilities because it does happen. There are many different coverages available that can be quite inexpensive and could get you out of a bad situation.
In the above example, if you would have purchased Basic coverage, your own auto insurance company would have paid your vehicle’s damages up to the purchased limits, even if the accident wasn’t your fault. Basic coverage is quite inexpensive.
Ask your agent about all different coverage options. You’ll be surprised to find out that some valuable coverage is cheaper than you though.
Some additional coverage to consider:
- Higher limits of liability vs. just the state requirements. If you do not have enough coverage to cover damages you are liable for, you must pay any uncovered damages out-of-pocket.
- Comprehensive and Collision Coverage – Provides theft, vandalism, fire, accidents and other damage to your vehicle.
- Optional Additions such as roadside assistance, towing and rental.
The above are among the most common additional coverage you should consider when shopping for auto insurance. Insurance quotes on auto are absolutely free, so quote all different kinds of coverage you may want. You won’t be sorry that you purchased additional coverage in case of an accident, trust us.
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