Monday, December 24, 2018

How much Auto Insurance do you need?

It is universally true that people never ever consider themselves bad drivers, even if they are so at times. If a car accident occurs, it is always the other person’s fault! California is an at-fault state, which means that the insurance company of the person who has caused the accident is responsible for paying not only the repair costs, but also the medical costs incurred.

Car-owning Californians presume mistakenly that they need only the minimum auto insurance coverage. Even the best of drivers can and do make mistakes that cause accidents. In addition, there can be circumstances beyond anyone’s control, where no person is responsible for an accident.

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Partial protection is never enough

In California, it is illegal to take a car on public roads without insurance coverage. There are very severe penalties for not having one. The minimum coverage limits are $15,000 per person and $30,000 per accident, which satisfies the legal requirements.

However, it is never going to be enough to provide for the kind of protection you need actually, if you are liable for causing the accident, in part or in whole. In California, the payment of medical expenses for accident-related injuries is usually through liability coverage. With medical costs skyrocketing, paying for medical expenses out of your own pocket could bankrupt you.

How much is enough?

Ideally speaking, the more coverage you have, the better it is for you. Of course, there are practical considerations that place a limit on this suggestion. It is not a good idea to pay huge premiums, far more than you can possibly afford.

Coverage of $100,000 per person and $300,000 per accident is very likely to be adequate for most accident claims and costs. With this kind of coverage, you will find yourself well protected from medical and repair costs, if you are liable for causing an accident.

There is yet another factor to take into account: what happens if you sustain serious injuries in the accident? Alternatively, if the injury is caused by a driver who has no insurance or has inadequate coverage? This is where other forms of coverage are important.

Uninsured Motorist Insurance: This insurance will pay for injuries and property damage if the at-fault driver does not have insurance, or if the coverage is not enough to pay for all the costs.

Collision Coverage: This will pay for damage to your vehicle regardless of who is at fault.

Medical Payments Coverage: This will pay for any injuries you may suffer in an accident as well as for that of any passengers in your car. The payment is certain, regardless of who is at fault.

Calculating the types of adequate auto insurance coverage, and how much is required involves a number of factors: road and vehicle related risk factors, the amount a person can afford to pay for insurance, and so on.

Finding the right balance requires the knowledge and experience of a reputed insurance expert. Consult one to ensure that you have full protection, under all circumstances, should you cause an accident.

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