Experts Remind Americans to Maximize Coverage


The poor economy and the alarming statistics regarding auto insurance has prompted industry experts and analysts to regularly remind car owners of their insurance policies.

Experts Remind Americans to Maximize CoverageStudies suggest that the number of uninsured drivers is closely tied to the nation’s unemployment rate. With more Americans expected to lose their jobs by the end of the year, analysts say that the U.S. can expect more uninsured drivers on the road. In fact, the state of California says that an estimated 20 percent of its motorists will be uninsured by the end of 2009.

The spike in the number of uninsured drivers is also partly to blame for the sudden increase in auto insurance premiums. Insurance companies claim that they have to raise premiums in order to sufficiently cover policyholders against expenses involving uninsured motorists.

Insurance coverage requirements differ from one state to the other. Some states have low minimum amounts while others require substantial amounts from the car owners’ insurance policies. Experts say that motorists have to be aware of the different state requirements to avoid costly repairs and medical expenses in the event of an accident.

Industry sources recommend purchasing coverage that would make a policyholder financially secure. This means availing of policies and added coverage to protect their assets in the event of a legal challenge. Motorists should also avoid purchasing just the right amount of coverage. Doing so can mean risking more out-of-pocket expenses if the damage exceeds the policies’ limits.

Having good bodily injury liability coverage is also a must for any policyholder, experts contend. This would take care of the medical expenses for any physical injuries the car owner or the other party receives. Of course, a higher coverage limit would mean a lesser chance that a policyholder would have to shoulder additional hospital costs.

Analysts also point out that not all damage to a vehicle is caused by traffic accidents. Falling branches, hail, floods, and even fire can wreak havoc on a car and the car owner’s finances. Purchasing comprehensive coverage will allow policyholders to have peace of mind. Experts say that comprehensive coverage is perfect for drivers who live in areas that see plenty of natural calamities and disasters. Car theft and vandalism are also covered by most comprehensive insurance policies. However, industry sources point out that policyholders living in areas that are more prone to specific car crimes can expect to see more costly premiums.