In most places in the world, having insurance is a legal requirement for operating your car. That being said, there are various coverage options depending on what you use your vehicle for, where you drive, and other risks you may not have considered.
Choosing the right insurance for your vehicle is of the utmost importance. Failing to have adequate coverage can ruin your life in the event of an accident and subsequent lawsuit. Here are some important insurance considerations to consider from DrivingGuide.com.
Liability, Collision, and Comprehensive
These three types of insurance are the trifecta of basic coverage when operating a motor vehicle. At a bare minimum, most drivers are required to have liability insurance on their vehicle to cover anything for which you are found legally responsible for an accident. This could include damage to someone else’s car or even someone’s lawn.
Collision insurance covers the repair of your car if it is damaged in an accident. If your car is totaled, this insurance goes toward replacing it, you can ask help from professionals to further discuss and ask for advice on what you should do next. Comprehensive is an extra layer of coverage that can help pay for damage caused by outliers, such as extreme weather or vandalism.
Uninsured/Underinsured Motorist Insurance
Just because it is legally required to have insurance in some places, doesn’t mean that everybody does. Furthermore, as many people are required to carry only the bare minimum in liability insurance, they may not have enough insurance to cover the damages incurred. Uninsured motorist insurance and underinsured motorist insurance help cover the costs of damages in these scenarios.
These types of insurance, often offered together, are also used in the case of a hit-and-run accident, where the liable party cannot be found.
Medical Payments and Personal Injury Protection Insurance
These insurance add-ons are meant to extend coverage to pay for your medical costs caused by an accident, whether you or the other party is found liable. Depending on your policy, it may even extend to cover income lost during the time you are away from work to recover.
This type of insurance is important to consider if job security is an issue or you are the sole provider for your family. Small business owners may also find this type of coverage useful.
Commercial Auto Insurance
Speaking of small business owners, having commercial auto insurance is paramount if you have a vehicle that is used for any work purposes. Even something as simple as your assistant jumping in your car to grab coffee for your team counts as a commercial activity. Many of the coverage options are the same as listed above, but with extra precautions kept in mind.
If you do not get commercial coverage and use your vehicle for commercial purposes, you may find yourself without coverage in the event of an accident. This is one of those cases where incomplete coverage could ultimately ruin your life.
Classic Car Insurance
If you’re a classic car enthusiast or owner, then you probably already know that you need special insurance to cover your prized possession. There could be nothing worse than taking your classic car out for a spin and having it irreparably damaged.
While scoping out classic car insurance, take time to determine if your car is classified as classic, antique or vintage. Sometimes there is overlap between categories, and sometimes the distinctions are specific.
Which category your car falls into for registration and insurance purposes depends on the year it was manufactured, how close you’ve stayed to the original design, and how many modifications you’ve added. If your car is more than twenty years old, this type of insurance may apply to you.
Having insurance will keep you and your loved ones cared for in the event of an accident. Make sure you have enough coverage for both yourself and the other party to avoid an expensive payout.