Perhaps you have purchased a new vehicle or your teenager has just received their driver's license. Congratulations! But before you start driving on the roads, you need to purchase car insurance. Four Point Insurance Services provides auto insurance for drivers, and if you are looking for coverage, this could be an excellent place to start.
There are auto insurance laws that require drivers to purchase and maintain coverage to indicate proof of financial responsibility. You will be required to produce proof of insurance to register your vehicle with your state's department of motor vehicles.
Types of Coverage
Liability coverage is the most common type of auto insurance. This is often because it's mandatory to have this type of coverage. Minimum auto insurance requires specific amounts of coverage for property damage for every accident and bodily injuries for each individual for every accident that you get involved with.
In most cases, liability insurance is not enough to cover the total cost of losses resulting from an auto accident. This is the reason why many drivers purchase additional coverage. Some of these additional coverage options may include collision and comprehensive coverage, underinsured/uninsured, medical payments, and Personal Injury Protection (PIP).
FOUR POINTS: Key Considerations for Automobile Liability Limits
If you are currently carrying the minimum required liability limits, please consider the following:
- Can any problems arise from only having the minimum liability limits? Minimum Liability limits are frequently inadequate protection. For example, property damage limit is often around $25,000. Most new cars are above this limit. You should never assume the other party has Under-Insured Motorist coverage. Since it is an optional coverage some may opt to not purchase it.
- What happens if I don't have enough liability limits on my insurance policy? Minimum Liability limits do not "limit" your liability. Once your insurance company has paid your policy limits, an injured party (or their insurance company) could file suit against you personally which would put your personal assets or future income at risk. Your property can be seized, and your wages may be garnished. Not to mention the nightmare of battling out through litigation in court.
- Many insurance companies charge "higher rate" for state minimum liability limits. That's right, you could increase your protection AND lower your premium.
- How do I avoid being Underinsured? One could argue you never have enough liability insurance. You don't want to discover this in the middle of a claim and recall you purchased lower limits just to save a few dollars on premium. Higher liability limits are often available for minimal premium increase.
Call or visit our office to speak with an agent and learn more about how to start a policy. We also have an online comparison tool for home and auto insurance where you can compare rates from multiple companies. We look forward to hearing from you!