Optional types of car insurance coverage that can be beneficial after a car accident include underinsured motorist coverage, medical payments, and gap insurance.
In the state of West Virginia, minimum car insurance coverage requirements are:
• bodily injury liability ($20,000/$40,000);
• property damage liability ($10,000); and
• uninsured motorist bodily injury ($20,000/$40,000).
Although these coverages do provide protection if the driver is liable for an automobile accident, there are some optional types that motorists should also consider carrying. They could help reduce the financial burden caused by an accident.
Uninsured/Underinsured Motorist Bodily Injury Coverage
Uninsured coverage provides protection in the event of an accident involving a driver who has no insurance. It can also be utilized in hit and
run crashes.
While West Virginia does require a minimum of $20,000/$40,000 coverage, it is a good idea to purchase this in combination with underinsured motorist bodily injury. In fact, drivers might want to consider purchasing a higher amount of uninsured than the minimum required, since it may not be enough protection in a serious accident.
Underinsured motorist bodily injury isn’t required but can be extremely beneficial. It helps in the event another driver has insurance but it’s not enough to cover damages. Medical costs and missed time from work can create significant expenses and losses, and underinsured coverage can fill in any gaps.
Medical Payments and Gap Insurance Coverage
Whether a driver is injured and/or the passengers suffer physical harm, medical payments coverage can help cover injury-related medical expenses. This is available no matter who was at fault for the accident. It is usually purchased in the amount of $5,000. But as with any type of coverage, the higher the limit the better the protection.
Anyone who owes more on a vehicle than an insurance company is willing to settle for after an accident would understand the importance of gap insurance. If the insurer pays much less than what is still owed on the vehicle, the driver could end up paying hundreds or even thousands of dollars to cover the difference. The gap between what’s owed and the value of the vehicle is covered by gap insurance. It is usually recommended when purchasing a new vehicle.
Collision/Comprehensive Coverage
Collision covers costs to a vehicle damaged in an accident. There is typically a deductible that must be paid first. The rest is based on the vehicle’s actual cash value. Factors that are considered in coming up with the vehicle's value are the condition, year and purchase price.
Comprehensive coverage pays for damages not attributable to an accident. For instance, damage from a storm or natural disaster or an object that falls onto the vehicle.
Whether a driver is considering coverage that is mandatory in West Virginia or optional, the limits should be carefully considered. To save money, many times the least amount of coverage is purchased. In the short-term it could help financially. But if there was a serious crash, it may not be enough to pay for damages.
