The Finance Blogger

Car Insurance – Do You Have Enough coverage? Anyone who drives a car probably always worries a bit when they get into their car. Do they have enough car insurance coverage. I know I do. Every time I talk with my insurance friends I feel like I can never have enough insurance. I am not talking about repairs to your car or the other guys. This is bad enough. It could cost you a lot if you really damage an expensive car. This is not life threatening, it will just put a big hole in your net worth. But let’s put things in perspective. What is the cost to cover serious medical issues involving hospitalization over a long time with possible physio therapy? These kinds of accidents could cost millions! This is what I worry about and how my family will survive if I cannot earn income!

I am not an expert and any comments in this blog should be taken as is and not from an expert. If you have questions or do not understand something speak to your agent and get it clarified. But just make sure you have enough car insurance to look after your family if you do have an accident.

Car Insurance – Do You Have Enough

There are at least 3 major types of car insurance that you need to consider. They are : Car Insurance – Collision, Car Insurance – Liability, and Car insurance – Comprehensive.

Car Insurance – Collision is really the insurance you carry to cover your car and the car you hit in the event that you have an accident. If you live in an area were no-fault insurance is in place, then it will cover the repairs to your vehicle after a collision. There are always issues that you need to be aware of with each policy so take the time to read the fine print and make sure you are covered for all of the things that you feel that you need to be covered by.

Car insurance – Comprehensive covers minor repairs to your car were there is no collision with another vehicle. Cracked windshields, broken mirrors, scratched paint etc are covered by comprehensive insurance. Many people with older cars will stop this insurance, preferring to pay for any repairs themselves. Consumers must be careful that when they stop this kind of coverage, that coverage that they may need are not stopped because they are bundled together with the main comprehensive coverage.

Car Insurance –

Liability is the big one for you and for the other guy. If you are at fault or cause damage to another persons property,  the courts may decide that you must repay the other person all of the damages that were caused. In some situations these costs can be huge as mentioned earlier and your insurance company will be very interested in understanding who was at fault, whether there was any negligence on your part. They will represent you, however the numbers involved can be large.  Many people feel that even $2 million of coverage is not sufficient.

When to Stop Car Insurance – Many people feel that you should never stop any kind of car insurance. While others feel that it is ok to stop comprehensive coverage and nothing else. Many states and provinces require you to show evidence of liability and collision coverage before you can obtain a car license plate or even to renew one. Bottom line is that you want to make sure that you and your family are protected. This includes avoiding bankruptcy due to an accident.

Drinking and Your Car Insurance – is a particularly important issue. You may have enough hassle getting a DUI ticket, but if you cause an accident because you were drinking, your insurance may not be valid. If you are concerned at all about this issue check with your insurance company to find out what their position would be if you had an accident and you were drinking. It is important to clarify if you are under or over the legal drinking limit for your state or province were you live!

We hope these comments have helped to clarify things. Feel free to post comments that will help our readers. Spam will be deleted.

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