Why You Need Vehicle Insurance
None of us likes to think about getting into an auto accident. But we know accidents happen. And insurance helps cover the costs when it does.
If you didn’t have Car Insurance, RV insurance or motorcycle insurance for your vehicle, you could be personally responsible for significant expenses that put everything you work for at risk. And of course, if your car, RV or motorcycle is vandalized or stolen, insurance helps out there, too.
Why do you need auto insurance, RV insurance and motorcycle insurance?
That’s right— in nearly every state it’s against the law to drive a vehicle without some form of insurance. Most states call for drivers to have a minimum of liability coverage.
Auto insurance, RV insurance and motorcycle insurance all protect your wallet when you’re involved in an accident. Otherwise, any accident that causes an injury, a fatality, or damage to property could land you in bankruptcy.
Cars don’t come cheap. Neither do customized RVs or motorcycles! Insurance protects the hard-earned dollars you’ve invested in your vehicle. You don’t want to end up with a totaled car while still making payments to the bank!
How Much Auto Insurance Coverage Do I Need?
An auto insurance policy can include several different kinds of coverage. Your independent insurance agent will provide professional advice on the type and amount of car insurance coverage you should have to meet your individual needs and comply with the laws of your state. Here are the principal kinds of coverage that your policy may include:
Liability for Bodily Injury:
The minimum coverage for bodily injury varies by state and may be as low as $10,000 per person or $20,000 per accident. Many auto policies stop at a maximum of $300,000 or $500,000 per accident for Liability coverage. If you injure someone with your car, you could be sued for a lot of money. The amount of Liability coverage you carry should be high enough to protect your assets in the event of an accident. Most experts recommend a limit of at least $100,000/$300,000, but that may not be enough. This is no place for cheap auto insurance. If you have a million-dollar house, you could lose it in a lawsuit if your insurance coverage is insufficient. You can get additional coverage with a Personal Umbrella or Personal Excess Liability policy. The greater the value of your assets, the more you stand to lose, so you need to buy liability insurance appropriate to the value of your assets.
Liability for Property Damage:
The minimum that you must carry varies by state, but that minimum is not likely to be enough to protect you in a serious accident. With many cars costing upwards of $50,000, you could easily be responsible for a substantial repair bill if you hit someone’s car and it is totaled. If you have a Personal Umbrella policy, you will be covered for excess costs, but your insurance company may require that you carry more than the minimum to qualify for a Personal Umbrella policy.
Covers the cost of damage to your own car in an accident. You don’t have to figure out how much to buy – that depends on the vehicle(s) you insure. But you do need to decide whether to buy it and how large a deductible to take. The higher the deductible, the lower your premium will be. Deductibles generally range from $250 to $1,000. Collision coverage is important to have if a car is new and valuable, but less important as the value of the vehicle declines. If the car is only worth $1,000 and the deductible is $500, it may not make sense to buy collision coverage. Collision insurance is not generally required by state law.
Covers the cost of miscellaneous damages to your car not caused by a collision, such as fire and theft. As with Collision coverage, you need to choose a deductible. The higher deductible you choose, the lower your premium will be. Comprehensive coverage is generally sold together with Collision, and the two are often referred to together as Physical Damage coverage. If the car is leased or financed, the leasing company or lender may require you to have Physical Damage coverage, even though the state law may not require it.
Covers the cost of medical care
for you and your passengers in the event of an accident. The limit you choose under Medical Expenses coverage is the maximum that will be paid for medical claims to each driver. Therefore, if you choose a $2,000 Medical Expense Limit, each passenger will have up to $2,000 coverage for medical claims resulting from an accident in your vehicle.
Uninsured/Underinsured Motorist Coverage – If you are involved in an accident and the other driver is at fault but has too little or no insurance, this covers the gap between your costs and the other driver’s coverage, up to the limits of your coverage. In some states, this coverage is limited to bodily injury, while in others it may cover property damage, as well. The limits required and optional limits that may be available are set by state law.
Personal Injury Protection (“PIP” or “No-fault”):
This coverage, required by law in some states, covers your medical costs and those of your passengers, regardless of who was responsible for the accident. The limits required and optional limits that may be available are set by state law.
Common Mistakes When Buying Vehicle Insurance
Shopping for the Lowest Price Available
You get what you pay for is as true in insurance as anything else. So when shopping for car insurance, RV insurance or motorcycle insurance, be sure to compare more than just price. Compare features and services. Ask about customer service guarantees, roadside rental car delivery, claims handling and flexibility in extended coverages. All insurance companies are not created equal!
Choosing Inadequate Liability Coverage
Liability coverage protects you in the event you injure other people or damage property with your vehicle. Choosing lower liability coverage limits may leave you seriously at risk financially, since medical bills and lost wages can quickly exceed low liability limits. Do more than choose state-required minimums; choose the coverage that reflects your personal financial situation.
Missing Out on Potential Discounts
Built-in premium savings as well as National General Insurance SmartDiscounts® can offer many ways to reduce your premium. And some of them may surprise you! Just a few discounts that you may qualify for include:
- Driving fewer than average miles per year
- Having anti-theft devices, airbags and other security devices
- Insuring multiple vehicles or having multiple policies through the same insurer
- Having a safe-driving record
Neglecting to Consider a Major Life Change
Life changes like moving, buying a house, getting married, having a new baby, or having a new teen driver in the household can affect your insurance needs – and the price you pay for coverage. So keep your policy current – from address changes to marital status to sending your firstborn off to college. These life events offer opportunities for revisiting your vehicle insurance coverages and may help you save more!
Selecting the Right Coverage
Selecting the right auto insurance, RV insurance or motorcycle insurance coverage is a balance of factors that take into account:
- The vehicle you drive
- The way you use it
- Your family situation
- Your financial situation
It also means understanding that as things change – a new car, a new job, more assets to protect – National General Insurance is ready. We can provide the breadth of affordable and comprehensive coverages that make sense for your evolving needs.
Where to start when selecting vehicle coverage?
- Whether you’re insuring a car, an RV, a motorcycle – or all three – the more expensive your vehicle, usually, the more money it takes to repair. A leased or financed car means paying back the bank or leasing company should a total loss occur.
- If you have customized your vehicle with permanently installed features, it also means more expense in the event of repair.
- Do you have a long commute or take frequent road trips? Among other things, extra miles mean more wear-and-tear on your vehicle, and greater need for roadside assistance in the event of a breakdown.
- Are you the only driver of your vehicle? Consider who uses the car, how often and choose coverage options to take multiple drivers into account.
- If you suffered an injury in an accident, would you have medical coverage through an employer or other means to pay for those expenses?
- Even a minor injury may mean you have to take some time off. Do you have a disability plan where you work?
Getting a free, no-obligation auto insurance quote is fast and simple! Our call auto, RV, and motorcycle insurance experts
will walk you through the process and provide you with an estimated rate based on the coverage types you select, your driving record, and other information.
When getting a quote, you can speed the process by having the following handy:
- Your current vehicle insurance policy (if you have one)
- A driver's license number for each person to be listed on your policy
- A VIN (Vehicle Identification Number) for each vehicle to be listed on the policy
- The lienholder's name and address if the vehicle is leased or financed
- A major credit or debit card for when you are ready to buy.
YOU HAVE NOTHING TO LOSE, AND YOU AREN’T LOCKED INTO ANYTHING WITH YOUR FREE QUOTE! You can see the great rate you could get when insuring your vehicles with us.
Call US TODAY at: 502-281-0961