Most people understand that car insurance is required by law if someone is operating a motor vehicle; however, there are multiple levels of car or motorcycle insurance that someone could potentially invest in. With so many options, it can be tempting to seek out coverage that seems like a steal.
With the economy still recovering from the recent downturn, many people are looking for ways to save money. Many drivers have decided to go with the lowest level of car insurance required by law, hoping to save money. Unfortunately, this approach could result in serious financial consequences should accidents result.
Liability Only Isn’t Enough
There are multiple levels of car insurance and many people have decided to go with liability only, the lowest and least expensive form of insurance available. If the policyholder has an accident, this policy will only pay to fix the vehicle of the other person. It will not pay to fix the vehicle of the policyholder if the car needs to be repaired or replaced. Because people need their cars to get to school, work, and run errands, this could place the policyholder under a significant amount of financial stress. It is always prudent for someone to invest in something more than liability only.
What if the Car is Broken Into?
When people are shopping for car insurance, they often think only about car accident. As a result, they overlook other reasons that a car could be damaged. Their vehicle could get broken into, damaging the door or the window in the process. The criminals could also steal valuables that are inside the car, such as a radio, GPS system, or computer. The lowest insurance package will not pay to fix the car or cover the property that was stolen. People need to make sure they have maximum coverage that will pay to fix the damages and replace the property.
Weather Can Be an Issue
Everyone knows that weather is unpredictable. Snowstorms can drive cars off the road. Tornadoes can pick up cars and deposit them miles away. These don’t constitute car accidents and require comprehensive insurance coverage to repair and replace a car damaged under these circumstances. Don’t wind up with a policy that won’t pay to fix a car that has been damaged by unpredictable weather. Weather is never the fault of the driver. Make sure to invest in a maximum coverage policy that will pay to fix a car regardless of the circumstances.
Even if someone has a maximum coverage insurance policy, it can be a challenge to force the insurance companies to honor the policy and pay out the claim. Anyone who is having trouble getting an insurance company to honor the terms of the policy should consider contacting an experienced attorney for assistance.