Buying motor vehicle insurance is a tricky and confusing thing to do. And since each state in the U.S. imposes its own insurance requirements, this might add to people’s confusion. Without proper insurance coverage, your local DMV may refuse to register your vehicle due to failure to comply with the state’s insurance requirements.
If you are unsure about your insurances, the best people to approach are the insurance agents. They are knowledgeable and will be able to help you sort things out. They can help you decide the best coverage for your needs or perhaps advise you to pay the basic minimum coverage.
For most people running on a tight budget, this may sound logical, as it complies with your state laws and provides just enough coverage. On the other hand, this decision may not be best for you. You don’t have to sacrifice your future to save money on auto insurance, as there are better ways to do that.
If you are planning to buy motor vehicle insurance, the following points must be considered:
- How much coverage your state is requiring?
- Is there a limit to the said coverage?
- Do you have any other specific coverage requirements? Can you afford to add it to your existing policy?
- How this insurance policy is to be applied?
You need to know how much your state’s minimum liability coverage requires. This coverage will take care of any injuries or damage to properties incurred during the accident. And as mentioned earlier, each state differs from the other. For example, it’s 25/50/10 in New York, while 30/60/10 in Minnesota.
The first two digits (25) refer to the maximum amount that can be covered and available for personal injuries per accident. The second set of digits (50) is the maximum amount that your insurer is obliged to pay for injuries or death per accident. The last digits (10) will take cover for any property damages.
The said limits will not cover your own expenses on medical bills and other damages, so it’s best to consider other types of coverage that will secure you financially, should something unfortunate happen. This is how you complete your motor vehicle insurance coverage.
You can choose either comprehensive or collision insurance depending on how much you are willing to pay. They can be very expensive but could provide you with the needed protection. Collision coverage, for example, will pay you regardless of who is the driver at-fault, which is one reason why newly purchased vehicles should have one. Additionally, you might want to consider buying additional coverage to cover hospital and medical bills in case of injuries.
The best time to buy motor vehicle insurance coverage is today. Although we don’t want to invest on something that we’re not even sure will happen, but nonetheless, it’s sometimes important to minimize the vague risks. If you can afford to buy multiple insurance coverage policies, then do so. This will protect you from any future setbacks and legal tussles.
