Car Insurance Tips – How Much Car Insurance Do You Need?
As unemployment continues to rise, many people are getting rid of their auto insurance to save themselves a monthly payment. In a study conducted by the IRC, or Insurance Research Council, the IRC assessed this result of the economic downturn and found that if trends continue, the number of uninsured motorists on a national level will rise from 13.8 percent in 2007 to 16.3 percent in 2010. Operating a vehicle without any coverage, among such a large portion of uninsured motorists, is becoming even more hazardous.
If you, like so many others, don’t have a lot of money to go around, you might be considering whittling your insurance down to the lowest coverage your state will allow. Unfortunately, the lowest coverage will probably not completely save you or your belongings if you have to file a claim. It would be wise to have more than basic coverage if your car is worth anything, or if you have valuables you want to safeguard.
In the United States, there are laws in every state with the exception of New Hampshire and Wisconsin that you must have liability insurance on your vehicle. The required policy is slightly different depending on the state in which you live. Examples of varied liability limits refer to the different amounts insurance required by the state in terms of the following three categories: bodily injury liability for one person, bodily injury liability for all people hurt, and property damage liability for a single collision. In Alabama, for instance, motorists must have at least twenty-five grand of bodily injury liability for one person, fifty grand bodily injury liability for all people involved and twenty-five grand worth of property damage liability.
Personal Injury Protection (PIP), or in other states Medical Payments (MedPay), will cover any hospital bills or wages you were unable to earn while without work as the result of an accident. They also offer benefits when there is loss of life and recover all but twenty percent of the worth of your belongings. This coverage is mandatory in fifteen states. There are also states with laws that render it necessary to have a car insurance policy that will pay for all of your hospital bills, and any pain and suffering losses that an accident incurs. In still other states you may be required to have insurance for vehicle injury if the other driver caused the accident and doesn’t have insurance.
Since the economic downtrend has left more and more people without insurance, a policy that protects in the event of an accident with an uninsured motorist at fault is a good idea, even if your state doesn’t require it. If you don’t have a lot of money for car insurance, it is still important to know what amount of insurance your state requires. It will be necessary for you to decide on the healthy balance that will protect you and your family without forcing you out of house and home.
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