At a minimum, I would start off with advising liability insurance. Most likely liability insurance is required by the state that you live in to either register and/or drive the vehicle.
Now, all auto insurance policies will contain limits, meaning the most they will pay out in the event of an accident. If your state does require you carry liability, they will specify the minimum you are required to carry, however, there is a good possibility you will want to carry more.
The higher limit of insurance you purchase, the higher the premium is going to be though. So, I would suggest you talk to your insurance agent, get a feel for how much it would cost for the next step up and the step after that and then determine which one you can afford but at the same time will protect your assets in the event you are sued because of an auto accident.
Posted: Wed May 26, 2010 07:20 pm Post Subject:
In addition to liability, you will want to consider looking at coverage for yourself. There are two areas you need to consider: medical (for yourself and your passengers) and damage done to your vehicle.
When considering coverage for your own medical expenses, you may take into consideration whether or not you have health insurance and what deductible you have on your health insurance policy. Check with your health insurer though as to how coverage is extended to an auto accident.
Also, how likely are you to have passengers in your automobile? If this is the case, you will need to take into consideration what would happen if one of those passengers is injured.
Last, you may want to purchase coverage for your automobile. Coverage can be purchased to cover things like fire, theft, vandalism, flood, collision, and so on. Can you afford to buy a new automobile if yours is totaled? If not, might want to seriously consider this coverage.
Posted: Wed May 26, 2010 07:22 pm Post Subject:
Great points above, I would also add there is always room for consideration for uninsured drivers. Unfortunately, this is a terrible problem throughout the United States. A recent study conducted by the Insurance Information Institute showed on average, 14% of drivers in the United States are driving without insurance. This statistic can vary significantly from state to state with New Mexico coming in with the highest uninsured motorist ratio of 29% and Massachusetts at the lowest of 1%.
Obtaining coverage for yourself and your passengers to protect you against damages caused by an uninsured driver is important. Some states require this coverage or may require you to reject the coverage in writing.
As mentioned above, take into consideration coverage for your medical bills and your automobile. How you get coverage for this can differ from state to state, some states cover damage to your automobile by an uninsured driver under your collision coverage, some states allow you to purchase a separate Uninsured Motorists – Property Damage coverage by itself. Talk to your agent in your state, ask him what sort of ratio of uninsured drivers are on the roads in your state, and how much it will cost to obtain coverage for you to be protected from such an unfortunate event.
Posted: Wed May 26, 2010 05:49 pm Post Subject:
At a minimum, I would start off with advising liability insurance. Most likely liability insurance is required by the state that you live in to either register and/or drive the vehicle.
Now, all auto insurance policies will contain limits, meaning the most they will pay out in the event of an accident. If your state does require you carry liability, they will specify the minimum you are required to carry, however, there is a good possibility you will want to carry more.
The higher limit of insurance you purchase, the higher the premium is going to be though. So, I would suggest you talk to your insurance agent, get a feel for how much it would cost for the next step up and the step after that and then determine which one you can afford but at the same time will protect your assets in the event you are sued because of an auto accident.
Posted: Wed May 26, 2010 07:20 pm Post Subject:
In addition to liability, you will want to consider looking at coverage for yourself. There are two areas you need to consider: medical (for yourself and your passengers) and damage done to your vehicle.
When considering coverage for your own medical expenses, you may take into consideration whether or not you have health insurance and what deductible you have on your health insurance policy. Check with your health insurer though as to how coverage is extended to an auto accident.
Also, how likely are you to have passengers in your automobile? If this is the case, you will need to take into consideration what would happen if one of those passengers is injured.
Last, you may want to purchase coverage for your automobile. Coverage can be purchased to cover things like fire, theft, vandalism, flood, collision, and so on. Can you afford to buy a new automobile if yours is totaled? If not, might want to seriously consider this coverage.
Posted: Wed May 26, 2010 07:22 pm Post Subject:
Great points above, I would also add there is always room for consideration for uninsured drivers. Unfortunately, this is a terrible problem throughout the United States. A recent study conducted by the Insurance Information Institute showed on average, 14% of drivers in the United States are driving without insurance. This statistic can vary significantly from state to state with New Mexico coming in with the highest uninsured motorist ratio of 29% and Massachusetts at the lowest of 1%.
Obtaining coverage for yourself and your passengers to protect you against damages caused by an uninsured driver is important. Some states require this coverage or may require you to reject the coverage in writing.
As mentioned above, take into consideration coverage for your medical bills and your automobile. How you get coverage for this can differ from state to state, some states cover damage to your automobile by an uninsured driver under your collision coverage, some states allow you to purchase a separate Uninsured Motorists – Property Damage coverage by itself. Talk to your agent in your state, ask him what sort of ratio of uninsured drivers are on the roads in your state, and how much it will cost to obtain coverage for you to be protected from such an unfortunate event.
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