Buying insurance for your car is hardly an exciting topic. Still, the reality is that liability coverage is both the law and utterly critical for you to protect yourself in case of an accident. When you collide with a pedestrian or another vehicle, your liability coverage keeps you from having to pay directly for medical bills and property damage that occur because of the accident. So while paying each month for insurance might not seem like it’s a big deal, without coverage, you could be financially devastated in a motor vehicle collision.
Each state has a minimum amount of coverage required by law, but liability coverage minimums only cover other motorists. Car accidents can be extremely costly, so we’re going to look at how to keep yourself financially protected so that in the event of a motor vehicle accident or MVA, you won’t take an enormous monetary hit.
Car Accident Financials
Studies show that at least 10-15% of all drivers on the roadway are underinsured or uninsured. That means in the event of an accident, your insurance will pay the other motorist, but who will pay for your bodily injury or damage to your vehicle?
Auto insurance will payout based on limits, and what these limits are will vary between states, companies, and what plan you purchase, but they are usually represented as two numbers, like this: 25/50, 30/50, and so forth. The first number represents how much money, in thousands of dollars, the insurance company will pay for each person’s bodily harm or property damage as a result of the accident. The second number represents the total maximum they’ll payout for each accident. Everything past those limits is on your shoulders, and if you’re the victim and the other driver is underinsured or not insured at all, you’ll be stuck with all of the medical and repair bills.
This is where paying for broader, more comprehensive coverage will save you money. By adding underinsured motorist (UI), underinsured motorist (UIM), and uninsured motorist property damage (UMPD) coverage, you will get paid out in the event of a wreck for damages you and your vehicle sustained. These policies will payout, even if the other motorist isn’t covered, and the peace of mind they provide is well worth the additional investment each month.
Right now, because of the pandemic, many insurance companies are offering several different ways to keep their customers insured and happy. These include but are not limited to:
- Refunds on some costs
- Deferred billing, or twice-yearly billing
- Payment plans
These are all great incentives for responsible motorists. Still, the problem with deferred payment plans is that if a motorist is in financial hardship and doesn’t pay their premium, the insurance will lapse. This means no coverage in an accident, and all resulting costs get placed directly on you. Ultimately this means that your risk of an accident with someone uninsured or underinsured is higher, and ensuring you have UI, UIM, and UMPD coverage is simply a responsible choice.
Why Independent Insurance Agents are the Smart Choice
The convenience of the internet allows us to buy insurance online, but unless you’re an expert, it’s a risky prospect. An independent agency offers the advice of professional insurance experts that can give you an idea about safe coverage amounts in your area. They’ll take their time to advise you, so you’re not underbuying or overbuying insurance, and they’ll let you know about your payment options and any other incentives currently available.
If you’re shopping for auto vehicle coverage, give Smith Insurance and Financial Services a call. Their agents are ready to meet and advise you on insurance coverage that fits your life and will keep you financially safe while you’re out on the road.