I went a long time without insurance when I was younger. This was clearly a big mistake. Although I never got in any wrecks, I still put myself in a position where I could have, and I wouldn’t ever have any coverage to pay for damage. I drove a larger SUV when I was younger (I don’t know why, I didn’t have a family at the time). Do not make the same mistake as I did when I was younger. Don’t put yourself in a position where you are unable to pay for damages.
However, this is not the case anymore. I have a large family, and I need a large vehicle to support all of them. Additionally, and more importantly, I need great insurance to support that. God forbid anything happens to my family or we get in a wreck. If that were to happen I would need great insurance to cover the cost of getting a new car to support the family, the cost of the other driver’s damages, and heaven forbid hospital bills.
There are a few different types of coverage that you are going to want to look into. Unfortunately, there are some plans that not all of us can afford. So I have thrown in some cheaper plans and some full coverage plans.
- Limited liability: this covers you in the event you are in a car accident, and it is your fault. This will cover the cost of the accident for the other drive, but it will not cover your car or hospital bills if there are any.
- Collision coverage: if you are in a covered accident, collision coverage will pay for the cost of damage to your car. If you are is totaled, collision coverage would pay for the value of your car.
- Comprehensive coverage: this type of coverage would cover things unrelated to a traffic accident: natural disasters, stolen car, hitting a deer, etc.
- Personal injury protection: even if comprehensive coverage isn’t something you can purchase, personal injury protection is definitely something you should. With this coverage, your medical bills plus the medical bills of your passengers would be paid, no matter whose fault the accident is.
- Uninsured/underinsured motorist protection: While state laws mandate that all drivers should be insured, this is unfortunately not always the case. Another issue that can arise is that while a driver may have liability insurance, many states have relatively low minimum coverage requirements that may not be enough to cover all of the expenses of an accident. So, if someone is legally responsible for damages related to an accident, you won’t receive any payment if they do not have coverage or you will receive less than you need to cover the cost of damages if your damages exceed their coverage amount. This is the type of situation where Uninsured and Underinsured Motorist Protection would help with expenses.
Saving tip: It’s usually relatively inexpensive to add uninsured/underinsured motorist protection to your car insurance policy, especially considering the amount of protection it offers.