How much Auto Insurance should you buy?
Well, the generic answer is buy as much as you can afford. But that’s not really helpful. That’s like a stock broker telling you to buy low sell high. Really, auto insurance is a bundle of several different types of insurance. What you need to determine is what are your needs.
Well, we learned that BI or bodily insurance covers the liability if you hit somebody else, what you would pay to them, and how much insurance you have to cover you for that loss. We’ve learned that uninsured motors, or UM, covers injury that could be paid to you if you were hit by someone who doesn’t have enough insurance. That means that they are uninsured or under insured. We also learned about personal injury protection. That means insurance you purchased to cover your medical payments.
The first thing you should do is determine what are the limits which are required by your state. Each state has certain minimum requirements that you must have. Certain states require you to have PIP or personal injury protection. That means you’re required to be a driver in that state to hold that type of insurance. Others require you to have a certain minimum level of BI.
Now, when you purchase automobile insurance, you need to look past the minimums. Determine what assets you have. What are your needs? What medical insurance do you have and what might be your needs in the future? Usually, you want to look at the following criteria. Number one, the more assets you have, the more BI, or bodily insurance, you should purchase. If you have a state which has a lot of uninsured or underinsured motorists, you want to purchase UM. Remember that UM, under insurance or uninsured motorists, protects you if you’re hit by another driver and they don’t have enough insurance. Then you want to take a look at your PIP. Most PIP, or personal injury protection, will pay 80 percent of the first 10,000. Many PIP policies also offer deductibles. That means you’ve got to pay the first 2,000 dollars out of pocket of your medical expenses. Take a look at your PIP policy. You might want to augment that with some med pay or additional PIP coverages. Also, on your UM, since your covering your person, get to highest levels that you can afford. Other types of insurance you might want to take a look at is your collision. What do you want to pay if your car is damaged or other personal property that means a vehicle is damaged? If you’ve got a car that’s not worth a lot, you might want to consider waiving or not insuring you car for collision.
All of these decisions are personal and they cannot be made across the board. Sit down with your agent and discuss your personal needs. Remember, the most important thing you are to ensure is the person in your family. Therefore, focus on UM, PIP, and med pay. Those are the types of things your agent will tell you, which will cover you and your family if they are involved in an accident and are injured.
The personal injury attorneys at Carlson, Meissner, Hart & Hayslett, P.A., fighting for our clients rights in personal injury cases in Clearwater, Tampa, Bradenton, Spring Hill, Pinellas, Pasco, New Port Richey, Manatee, Hillsborough and Hernando Counties in Florida.
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