Three Things You Absolutely Need in Your Auto Insurance
Auto insurance is something most of
us take for granted. We assume that it’s there when we need it and usually it
is. But nobody ever plans to use their automobile insurance, and when a serious
accident occurs, you might be surprised at what is and what is not included in
your policy. Even though you hope you never need it, be sure that you auto
policy has all of the necessary elements.
A Reasonable Deductible – An automobile insurance plan is required to drive a
car, so we all have a policy if we drive. However, many of us don’t fully
realize what we’re signing up for when we arrange that low price policy. The
lower your auto insurance rate, the fewer things will be likely be included and
the higher your deductible will likely be. The deductible is how much you have
to pay out of your own pocket before the auto insurance company pays out.
If you hit a deer on a dark road,
for example, and total your car, you’ll have to pay your deductible to the car
repair place before insurance will fork over the rest of the funds. Or you
might get a check in the mail for the cost of repairs minus your deductible
since the insurance company assumes you’re going to pay it. Deductibles can be
as low as $50 or well into the thousands. The higher your deductible, the less
you pay per month on your insurance. But when an accident occurs, you’d better
have that $1,000 deductible ready to go if you plan to get your car back any
time soon.
Rental Car Provisions
– When your car is totaled, you don’t get a check the next day to buy another
one. The insurance process can take weeks, possibly months to settle before a
check arrives to buy another car or to repair the one that was badly damaged.
In the meantime, you’re sitting without a mode of transportation. Many
automobile insurance policies include a provision for a paid rental car should
you not be able to drive your car for a time. However, many don’t. If you’re
not sure if you’re covered, you can be out hundreds or even thousands of
dollars on a rental car or left using public transportation to try and get to
work on time without your normal mode of transportation.
Uninsured Motorist Coverage – The minimum auto insurance requirements include
liability coverage which protects you should you crash into another car. But if
another car crashes into you, you’ll have bigger problems if that individual
does not have auto insurance or is underinsured. Most basic policies don’t
cover medical and property expenses incurred by uninsured motorists. This
leaves you injured with car repairs to pay for yourself if you can’t track down
the individual to get your money another way. Uninsured motorist coverage is
designed to help cover the costs for you when you’re struck by someone without
insurance. The insurance policy does not benefit the uninsured driver in any
way.
