Auto insurance – the necessity of auto insurance


A study done by the Insurance Research Council shows that more number of people are avoiding to take any auto insurance cover so that they can save money. This fact is attributed to the growing unemployment in the country and if this scenario persists the number of uninsured auto drivers will witness a steep climb. With so many people driving without insurance cover the outcome may be disastrous.

Auto insurance cover is a must in all the states in the US excepting one or two. But how much insurance is required for protection? This depends on your affordability and you can start with the minimum insurance cover required by the state you are living in. But this may prove insufficient to cover the damages at the time of filing a claim. It is always wise to get more than the minimum insurance cover for your car, unless the vehicle is not worth the money you are paying to cover it.

The mandatory insurance cover required differs in each state. All states require that at least a liability cover is on for all automobile owners. For example Alabama requires $25,000 cover for bodily injury liability for one person, $50,000 for people injured and $25,000 for property damage liability for one accident. Personal Injury Protection (PIP) or MedPay is required in some states. This coverage pays for your medical expenses arising out of injuries suffered in an accident and covers 80% of the losses. There is also a death benefit attached to it.

Some states require auto insurance that also covers your medical bills, pain and suffering losses. Some states require you insurance for damage by other driver who is either insured or uninsured. Though all states have the minimum or no requirement on liability it is always better to buy higher limits of insurance cover.

There are other insurance the comprehensive and collision coverage to consider. These covers take care of expenses spent on your car in repairing or replacing. Collision coverage takes care of your car if it collides with another car or anything stationery or moving where as the comprehensive insurance cover takes care of damages from fire, theft, natural calamities and other such things.

If the car you own or driving is not much of worth it may be wise to just stick to the minimum requirement. If you already have a health insurance plan you may drop the idea of taking up Personal Injury Protection or MedPay. If the organization you work for offers roadside assistance you don’t need to buy it. A newly leased vehicle carries warrantee so you don’t need to get mechanical breakdown insurance.

When you are considering the amount of coverage that is needed for your car, you need to also take into consideration the people who are going to be driving it. If you are looking out for coverage for your family car, then it is recommended that you opt for a comprehensive coverage that pays for all. This will help you have peace of mind, anytime any member of the family takes the car since all the costs will be covered.

You may be hesitant in spending money on auto insurance cover but in the event of an accident this is what is going to help you out of the situation.