What Should Your Car Insurance Cover?

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According to the 2018 Statewide Report of the Michigan Traffic Crash Facts, there were 75,838 people injured in 312,798 traffic accidents. Of this number, 974 died as a result. The total number decreased by 5.3% from the 2017 data. While the number decreased, it is still alarming. These numbers make it necessary for car owners to get car insurance that will help protect them in case of injuries. 

Car Insurance Coverage Drivers Must Have

Bodily Injury

This coverage is a must as most states require drivers to have bodily-injury liability insurance. This insurance will cover medical treatment, rehabilitation, and therapy for injuries and funeral costs in case of death. It also covers not only the driver but also passengers and even affected pedestrians. It will also include lawyer fees. If you are the aggrieved party, make sure you get reliable car accident lawyers on your side. You may view website of The Clark Law Office to get an idea of their experience dealing with insurance companies. 

It is highly advisable to secure insurance coverage of at least $100,000 per individual or $300,000 per car accident. 

Property-Damage Liability

Accidents can happen at any time. Sometimes, accidents are our fault. So, it is best to get property-damage liability coverage, which will cover the repairs of the other party’s car or property. The state minimum averages $15,000, but it would be best to get at least $35,000 in coverage. 

Uninsured/Underinsured Motorist

Some accidents can happen when an uninsured driver accidentally hits your car and runs off. This coverage would help you pay for medical expenses, rehabilitation, funeral, and suffering costs of the victims in your car. It helps pay for household members as pedestrians as well. Get uninsured/underinsured coverage with the same limits of your bodily injury liability insurance coverage

Personal-Injury Protection

Also known as the no-fault insurance, this particular insurance coverage is for the medical, rehab, and funeral costs for household members, including wages lost secondary to injury and in-home care, if necessary. 

If you have additional budget, consider getting these options: 

Collision Coverage

You can use this for replacing or repairing your car after an accident. If you acquired your vehicle through a loan, it is a must that you get this. 

Comprehensive Coverage

This insurance coverage pays for stolen contents in your car or if your vehicle gets damaged by fire or water. Some lenders require this coverage, as well. 

For the comprehensive and collision insurance coverage, you will be required to choose a deductible – an amount that you have to pay the repair shop before the insurer puts up an amount. Note that the amount of the deductible on your part will give you more savings. It is advisable to get a deductible amounting to $500 at least for each coverage. 

For vehicles not amounting to more than $5,000, getting collision and comprehensive insurance might not be necessary. It would actually be worth less, as the premiums you’ll pay will most likely be more than the payout, even if your car gets totalled. 

You Can Do Without This Insurance Coverage

Towing and Labor. Insurance companies will only pay if you cannot drive your car away from an accident. If you are a member of an auto club, you don’t need this one as most clubs offer such privileges with their membership. 

Rental Insurance. You probably don’t need this if you don’t rent a car on a regular basis. 

Accidents may happen anytime, but it doesn’t mean that you cannot do anything to prepare for it. Insurance can work for you if you have the proper knowledge. 

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