Auto insurance companies always offer a whole range of insurance products and it can be quite confusing. Hence, one must always shop around for something that fits their needs. Choosing the right product would depend entirely on the make, model, and year of manufacture etc. So the pricing of the insurance plan will depend on that.
Sometimes even having a full coverage might not be helpful even if you are a cautious driver and are a driving an old vehicle. If you can afford to extend the coverage then do so by all means.
State minimums are prescribed at $50,000 for bodily injury (other person) and $100,000 for medical costs (pillion and you) and $25,000 if property is damaged. This is normally written as 50/100/25 on the declaration sheet. This was the minimum prescribed by most states. However, in recent times some states have increased the figures. Here the maximum amount that the insurers are willing to pay in case of an accident is mentioned. As all costs in the US have increased especially medical care, it is bound to have an effect on the insurance rates as well as the minimums that had been prescribed will not suffice to cover anything due to the high costs. Hence it makes sense to get extra coverage or there is a risk of paying out of your pocket. For instance, if the insurance plan doesn’t cover everything then the person who was injured by you will come after your assets to see that all the costs are covered.
Having just the basic liability insurance can cause serious problems especially if the other driver is uninsured and if you are the victim, unless you have‘uninsured motorist coverage.’ Most often one out of every five drivers does not carry any coverage.
The uninsured motorist coverage does not cover just the damage done to your vehicle as well as medical costs but it will also take care of the loss in wages in case of disability and out of job situations. However, these limits will be on par with the liability coverage, so one must plan accordingly.
Always make an honest assessment of your driving habits and look at the past history while shopping for insurance. If you haven’t got a ticket in the last three years then it is fine or it is better to wait for six months and get fresh quotes.
