Getting The Right Insurance Coverage For Your Car Or Truck
When you are shopping for insurance for your car, truck, or SUV, it is crucial that you get enough coverage, both for you and the other drivers on the road. Most states have minimum requirements for insurance, and your lender may require something specific as well. Understanding the coverage needs for your situation can be difficult but asking questions of the insurance agent you work with is your best resource to try and understand it all.
Minimum Coverage
Your situation may change the coverage requirements for your car or truck. If you are financing the vehicle, you will have to keep enough insurance on it to replace it if something happens to it. This is less about protecting you and the more about the finance company recovering their money. If the car is totaled, the insurance will pay the car off as long as there is enough coverage on the vehicle. It does protect you as well because you are not stuck paying for a car you do not have and you are free to go and buy a new car and start fresh.
State Requirements
If you own an older car that is no longer financed through a bank, you may be able to lower the amount of coverage on the vehicle. Be sure to check the state requirements for you are though. Most states still require you to have enough insurance to pay for any damage you cause if you are involved in an accident and found to be at fault. Liability insurance only covers the other driver or the property you damage but not your care so be careful about how much you reduce the coverage once the car is paid off.
No Insurance
There are a couple of states that do not require you to carry any insurance on your car at all, but beware, if you cause an accident, you are still financially responsible for the damage your cause. Not having any insurance on your car might save a few dollars every month but in the long run, it could cost you a whole lot more. If your state does not require you to have insurance coverage, the best thing to do is to talk with an insurance agent about what you can afford and how much coverage you can get. Basic liability insurance is very inexpensive for most older vehicles, and while you may never need it, you will be glad you have it if you do.
Contact an agency, like Insure With U.S., for more help.
