The most basic type of car insurance that you can get is liability insurance. In most states you are required to have at least liability insurance to operating any vehicle on the road. This type of insurance doesn?t cover your vehicle only the damage done to other property and people.
When people speak of the basic limits of liability they are referring to the lowest insurance policy a company has to offer. Although it varies from company to company, the minimal amount of coverage is usually $25,000 for property and $50,000 for injuries. This is usually displayed in a policy as $25,000/$50,000. This means that the insurance will cover up to that much in property damage and injury however if the accident causes more damages then your policy will cover you are at risk of being sued for the rest.
There?s another type of insurance that will allow you to cover your vehicle in the event of an accident called full coverage. If you have a car that you are paying off then you will be required to have full coverage on it until it?s paid off. Full coverage is also handy if you can?t afford to repair your car or buy a new one in the event of an accident. Both full coverage and liability insurance have coverage that range from as little to $25,000 up into millions of dollars in coverage.
In most cases basic liability will cover an accident and injuries. However if you are in a more serious crash then you will have to pay the difference that the insurance doesn?t cover. So if you only have $50,000 in coverage and you do $100,000 in property damage then you will most likely be sued for $50,000.
As you may expect the price for your premium will go up with the higher coverage plans. However there are some other factors that can increase the price of your plans as well. If you?re a young driver, have a bad driving record, or a sports car you are likely to pay higher premiums. Likewise if you?re the parent of someone who has one of these three items and he or she is on your plan you can expect to pay higher rates as well. You should also remember that the medical coverage is always the larger number and is usually double the amount of the property damage coverage due to medical bills being so expensive.
In many states driving without insurance is illegal. You?re required to have state minimum liability coverage. Even in the states where you?re not required to have insurance you should as driving without it is very risky. Even a small accident can cost you thousands of dollars that will take years to pay off. Usually it?s better to have upgraded insurance that will cover damages that are done to your vehicle as well. Comprehensive coverage is also good for those who live in the city or in areas of extreme weather. This is because comprehensive is designed to cover damages to your vehicle not caused by accident such as theft and weather damage.
Finding the right type of insurance for a vehicle can be a difficult and long task however it?s a very important one. If you?re unsure about what type of insurance would be best for you then you should consult one or several insurance agents and get their recommendations.
When people speak of the basic limits of liability they are referring to the lowest insurance policy a company has to offer. Although it varies from company to company, the minimal amount of coverage is usually $25,000 for property and $50,000 for injuries. This is usually displayed in a policy as $25,000/$50,000. This means that the insurance will cover up to that much in property damage and injury however if the accident causes more damages then your policy will cover you are at risk of being sued for the rest.
There?s another type of insurance that will allow you to cover your vehicle in the event of an accident called full coverage. If you have a car that you are paying off then you will be required to have full coverage on it until it?s paid off. Full coverage is also handy if you can?t afford to repair your car or buy a new one in the event of an accident. Both full coverage and liability insurance have coverage that range from as little to $25,000 up into millions of dollars in coverage.
In most cases basic liability will cover an accident and injuries. However if you are in a more serious crash then you will have to pay the difference that the insurance doesn?t cover. So if you only have $50,000 in coverage and you do $100,000 in property damage then you will most likely be sued for $50,000.
As you may expect the price for your premium will go up with the higher coverage plans. However there are some other factors that can increase the price of your plans as well. If you?re a young driver, have a bad driving record, or a sports car you are likely to pay higher premiums. Likewise if you?re the parent of someone who has one of these three items and he or she is on your plan you can expect to pay higher rates as well. You should also remember that the medical coverage is always the larger number and is usually double the amount of the property damage coverage due to medical bills being so expensive.
In many states driving without insurance is illegal. You?re required to have state minimum liability coverage. Even in the states where you?re not required to have insurance you should as driving without it is very risky. Even a small accident can cost you thousands of dollars that will take years to pay off. Usually it?s better to have upgraded insurance that will cover damages that are done to your vehicle as well. Comprehensive coverage is also good for those who live in the city or in areas of extreme weather. This is because comprehensive is designed to cover damages to your vehicle not caused by accident such as theft and weather damage.
Finding the right type of insurance for a vehicle can be a difficult and long task however it?s a very important one. If you?re unsure about what type of insurance would be best for you then you should consult one or several insurance agents and get their recommendations.
About the Author:
Graham McKenzie is the content syndication coordinator for Carinsurancesa.co.za. South Arica?s leading Car Insurance portal.
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