Vehicle insurance coverage is critical

I revisited my vehicle insurance recently and learned a thing or two that I missed with my previous coverage. We buy auto insurance at the time of vehicle purchase and it is mainly the cost not the purpose of coverage that comes first at the time. We sign up for the legally required minimum coverage. It is a big mistake and you won’t realize it until an accident force you to look at your coverage.


Instead of learning the hard way, look at types of coverage you need and it’s cost. Keep in mind cost shouldn’t be the only criteria. Become familiar with liability, collision and comprehensive coverage you are buying. Collision coverage pays you for repairs to your vehicle regardless of who is at fault especially when the other party is uninsured. You won’t recognize the rental coverage until you are forced to face it. Rental coverage pays for a rental vehicle while your vehicle is repaired.

Minimum required coverage varies according to the state. Keep in mind you are responsible for damage if you are the guilty party and you should consider adequate liability coverage. In an accident and subsequent claim, if you are the responsible party and the damage is over your coverage limit, your personal assets such as your home, future earnings, and other valuables could be at risk.