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What Options Are Available With Auto Insurance?

Most states require all drivers to have auto insurance. Normally, the minimum requirement is to at least have liability coverage. If the person needs medical assistance during an accident, liability coverage will take care of the expenses. Presently, the minimum limit for personal injuries is $25,000 per individual. In addition, if a car needs to be replaced or repaired, this minimum coverage will handle such costs. The minimum compensation per accident is $50,000 while property damages receive $25,000 minimum.

Practically speaking, these limits are quite low considering the actual cost of hospitalization and treatment. When it comes to repairing or buying a car, the minimum coverage is also not enough for a decent vehicle. That is why it is advisable to get more than just a basic plan when you purchase an auto insurance policy. Bear in mind that, if you don’t have enough means to spend for hospitalization and other damages; the other party can sue you. It is a reasonable investment considering the repercussions later on a worst case scenario.

Drivers who don’t settle their financial obligations will be penalized by the state. First-time offenders normally pay fines ranging from $200 up to $500. Second-time offenders risk paying more than $1,000 in fines. On top of that, the vehicle gets impounded and the driver’s license gets suspended.

Most car insurance providers offer the standard coverage which has eight categories. Basic liability coverage ensures that the other party’s costs, whether it’s for medical care or car repair, is taken care of. This, of course, remains true only when the person responsible for the accident has an updated car insurance plan. If there is a law suit involved due to the accident, and a lawyer is needed to represent you, the basic coverage will pay for attorney fees.

When death occurs from accidents where riding a bicycle is involved, the medical payments coverage settles expenses arising from the funeral. This is also the case when a pedestrian dies. Similar to the medical payments coverage is what we call “personal injury protection”. However, in addition to the financial assistance for medical and funeral costs, 80% of the income lost will also be compensated. If there is a need for a caregiver after the accident, this form of insurance will also shoulder that expense.

Sometimes, there are drivers who are under-insured. Others do not have any insurance protection at all. As the name implies, the uninsured or under-insured motorist insurance compensates for expenses when the other party doesn’t have insurance or doesn’t have enough money to pay for the expenses that were brought about by the accident.

For costs related to the repair or replacement of the damaged auto, collision coverage can shoulder this one. The total amount of the payout is computed from the value of the car less your deductible. If you’d like to be compensated for other accidents aside from collisions with other vehicles, comprehensive coverage is an option for you. Fees arising from towing and labor are included here. If you’d like to be reimbursed for rental costs when your damaged vehicle can’t be used, rental reimbursement coverage handles this.