For the average consumer, buying automobile coverage is somewhat of a sour subject. After all, most motorists are required to purchase auto insurance and that can leave a bad taste in the mouth of individuals. Many would prefer to have the option to decide for themselves whether or not they will be purchasing vehicle policies. The fact of the matter is that an automobile policy is a very valuable product and the reason that states require it is not intended to punish those who choose to occupy the roads, but to protect them and purchasing the right amount can offer ideal protection.
If the local governments allowed motorists to operate vehicles without coverage, the sad fact of the matter is that there would likely be many more uninsured drivers utilizing the roadways; as it is, it is estimated that there are 1 in 6 uninsured motorists behind the wheel in the United States. Allowing motorists to drive without policies would mean tons of unpaid injuries and property damage along with flooded courtrooms and numerous lawsuits. This is not to mention the outstanding hospital bills. All of these factors would lead to high premiums and healthcare for the rest of the citizens. Therefore, automobile coverage is required, but consumers must also understand how much car insurance should be purchased. Simply because a state law mandates a certain level of protection, it does not mean that this will be adequate in the event of a traffic accident.
Making the choice of the right amount of coverage to purchase can be a very important process of getting insured. Unfortunately, many motorists set out to obtain policies consisting of the minimum required by the state in which they reside, but this may not always be the right approach. Since there is no policy that can fit every individual’s needs there is no recommendation of just how much auto insurance to buy that can be right for everyone. Every motorist is unique, has a different situation and assets to protect. One thing is almost always certain and that is that settling for the minimum requirements will most likely be too little protection.
Choosing coverage will have to be an educated decision made by the motorist and there are many options available to protect against a variety of risks. States have developed minimums that drivers may purchase, but in many states these requirements can leave drivers open to financial hardships if they are involved in a traffic accident. For example, according to the California Department of Insurance motorists are required to carry liability limits consisting of $15,000 for bodily injury to one person, $30,000 for bodily injury per accident and $5,000 for property damage liability. If a motorist carrying these limits were to strike another vehicle and cause an injury to the other party which would require a lengthy hospital stay, the chances are that $15,000 will not cover the cost of the necessary medical care and the insured may have to pay for the expenses out of pocket or be sued for the remaining compensation due to the other party. It is often suggested that consumers raise liability limits to as high a limit that can be afforded to help protect against such a scenario.
The state of California, along with other states, also allow consumers to waive the option to buy Uninsured Motorist coverage, which may not be a good decision by the driver. There are many drivers operating without a valid policy and being involved in an accident with such a motorist without payment for their injuries and having to go through litigation in hopes to receive compensation. Many states make uninsured motorist coverage a requirement, but for those who live in a state that does not, may want to consider purchasing the option; it usually only costs a little extra in premium. States do not require motorists to buy coverage for physical damage sustained by their automobiles, but this can be beneficial to many consumers. If an individual owns a vehicle with a significant value, comprehensive and collision should be considered. The cost to replace a vehicle may not be something that the average person can afford. Getting insured is very important and most likely a necessity, drivers should be sure to choose policies carefully to protect against potential risks.
Source: http://www.onlineautoinsurance.com/quotes/how-much-car-insurance-costs.htm
