Having a car could make the life easier. Having a car could make the journey simpler. Having a car could make the expense more too. The auto insurance will be in our monthly expense. The price of car insurance is not low. However, this kind of insurance is something we should have before something wrong happe[AdSense-A]ns. When we decide to have a car, we should have thought about everything that ...
Not many drivers understand the importance of auto insurance. In America, however, most states require their registered drivers to have such insurance. At least 47 states require their drivers to have auto insurance, especially the liability coverage. If you want to stay safe and protected during your daily activities, having insurance is a must. However, there are so many different coverage and types, so the process of choosing the right type can be quite overwhelming. It doesn’t hurt to dig deeper into the matter.
Market vs Agreed Value
Often times, car owners become speechless and confused when they are asked whether they want to have a market or agreed value. That’s why you should make your own research before marching to the nearest car insurance company.
Market value is the value of your car when a claim is made – of course, with considerations of the car, make, age, and also a model. Agreed value, on the other hand, is the value of your car made by agreement – usually made between the insurer and you. The value is generally fixed to the new policy renewal date.
Insurance Needs: What Are Yours?
A fender bender will be the least of your problems if you live in the busy and hectic city. That’s why a lot of drivers and car owners choose more than one type of coverage so they stay protected during accidents. In case you want to choose several options together, there are some things you need to remember.
First of all, knowing your state regulations is a must. You definitely don’t want to violate the law, so be sure to know the requirements. 47 states require you to have liability coverage (for property damage and bodily injury) while 15 states (including Maryland, New York, Florida, Massachusetts, New Jersey, and Michigan) require you to have PIP coverage (for lost wages and medical expenses). The state will determine the minimum purchase, but you can always have more than one type of coverage if you have the budgets.
Second, you need to understand your own needs before choosing a coverage. What do you need more: a coverage that can cover auto repair and medical bills, or a coverage that can pay for rental cars? Knowing that you have various options can help you make better and wiser decision. This is one of the many reasons why you should know and understand different types of car insurance coverage.
Don’t forget that you also need to consider your spending. You need to really consider things carefully. Don’t rely on liability coverage alone because you don’t know what happens in the future. In case you hurt someone and you only have the liability insurance, it is possible for their attorneys to after your assets. Before deciding on how much to spend on the insurance, you need to understand your own assets and decide how much you are willing to lose, in case such unfortunate events happen. It doesn’t hurt if you can have different scenarios for different unfortunate events. It will give you clearer ideas of how much money you should prepare.