Have you been in a situation where you thought you got it all right with your motor vehicle insurance? Did you ever think all you had to do was get a coverage that you deemed enough and acceptable to the authorities, and find out that you were wrong? It is probable that when you realized this mistake, it was already too late. Believe it or not, you are not alone in this mindset.
Many policy owners fail to focus on how and why insurance works. Sometimes they do not care to study the coverage of their policy; instead they just worry about how much they need to pay as premiums. They think as long as they are covered, they will be fine, not knowing whether the coverage will be sufficient later on or not. When they paid their premium cheap, they probably thought they got a good deal. Heaven forbid they meet an accident and their liability is only 25% of the total damages, then they will shell-out more than they thought they would.
Liability coverage is a component of motor vehicle insurance that is mandated by law. It is an absolute must that every driver subscribes to this policy. There is the least allowable liability coverage, but one must not just settle for that. A wider and more extensive (thus expensive) coverage is better because one will never know the degree of an accident. Some people prefer to pay more in the present rather than shell out more than they could afford in the event of an accident. This is actually more logical than paying more for personal or collision coverage and leave liability coverage inadequate.
Again, the latter is required by law while personal and collision coverage are totally optional because it is assumed that most people have personal insurance and own motor vehicle insurance anyway. The cost of liability in case of an accident may turn into an ugly battle. No one would want to be in the center of all that because they cannot afford the actual damages versus the amount of coverage.
With that out of the way, there is still one aspect of motor vehicle insurance that policy owners need to know: filing for a claim is not as easy as it seems. Leaving agents to handle it may not be enough as insurers will refute claims whenever they can. They will find all the mistakes a driver made to cut the costs on their end. Every driver should know what needs to be done right away. It is always advisable to consult a lawyer every now and then to be rightfully informed.
