A lot of people blindly follow what their insurance brokers say when they draw out a car insurance policy. Although most insurance brokers know what they are doing, car owners like you should not let these people make decisions on your behalf. Remember that it is your property and your safety that is at stake here so be sure to know what you are getting yourself into before you get an Austin car insurance policy.
Austin is part of Arkansas so the laws of this state apply to you. Arkansas is a ‘tort state.” Under its insurance laws, drivers who are at fault can be held responsible for any personal injuries and property damages they cause. To cover for possible damages resulting from road accidents, the state of Arkansas requires all drivers to get minimum bodily injury liability of $25,000 per person injured and a maximum coverage for bodily injury liability per accident is $50,000.00. When it comes to property damages, drivers are required by law to get the minimum coverage of $25,000.
Now, just because the law of your state only asks you to purchase this much car insurance, that does not mean that you should not get higher coverage. We all know that in a tort state, litigations usually follow an accident. When lawyers are involved in settling disputes, the amount of expenses can be tremendous. Since your insurance coverage is limited, there is a pretty big chance that you will need to shell out money from your own pockets to pay for expenses related to the accident. If you do not want to end up paying a lot of money from your own pockets, you better get higher car insurance coverage. Yes, higher car insurance coverage always comes with higher premium rates, but if you want to stay fully protected, it is necessary to make that extra investment.
Aside from getting the protection required by law, it is also wise to get optional coverage. If you drive a brand new car, get comprehensive coverage, collision coverage and gap insurance. Comprehensive coverage pays for the repairs and maintenance of your vehicle while the collision coverage takes care your car in case of accidents. As for gap insurance, this pays the balance between actual and estimated price of a car.
Do you need to get extra coverage for yourself? Yes, you should also get medical payments coverage to cover for your hospital bills in case you get injured during an accident. Remember that your bodily injury insurance pays for the hospital bills of the other driver and not you so you need to get your own coverage.