Auto Insurance and Why it is Important
Auto Insurance, what Levels are Needed?
Bryan Gallo of NBC News Palm Springs Interviews Attorney Kevin Cortright about the purpose and importance of having proper auto insurance coverage. They discuss the reasons we have auto insurance and the minimum required policy limits. Additionally they talk in more detail about what the different types of insurance coverage actually cover and why they are important.
Auto Insurance Protects Others
If you have been involved in an accident that has been determined to be your fault, insurance protects both you and the person you have hit. First your insurance protects you from the pending financial loss you can suffer due to the damages you caused. You could owe money to fix the other drivers car, pay for their medical expenses, lost wages, or even pain and suffering. These damages caused by the accident could run into the hundreds of thousands of dollars. Auto insurance steps in to cover the damages up to the limits of the auto policy that you have purchased.
It is wise to carry the highest liability and collision limits that you can afford. The higher your limits are the less likely you will face personal responsibility for the damages that you have caused.
Auto Insurance Protects You
Drivers frequently fail to recognize that their insurance can also protect them if they have been hit or injured in an accident. If the accident is someone else fault you will be relying on their insurance to cover your damages and losses. But what happens when the other driver either does not have insurance, or their insurance levels are to low? Well that is when your auto insurance policy can protect you. You should carry uninsured driver, underinsured driver coverage (also called UM/UIM), this coverage protects you and kicks in when the other driver’s policy is insufficient.
Again it is wise to carry the highest uninsured, underinsured limits you can afford and that your insurance company will allow you to carry.