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The Most Important Car Insurance Coverage
The most important coverage has to be your state's minimum liability and property damage coverage. More than anything else you need to maintain car insurance to keep yourself legal to drive. You risk losing your driver's license and fines driving without it. Get into an accident without liability coverage and you could be facing enormous penalties including bills from the damages you caused.
Liability and property damage coverage is there to protect the other drivers on the road from damage you cause.
Your car insurance policy probably lists liability as bodily injury 20/40 as an example. 20 is the place holder for how much will pay out for medical expenses, pain, and suffering per person and is valued at $20,000. 40 is the place holder for how much will pay out for medical expenses, pain, and suffering per accident and is valued at $40,000.
Property damage provides coverage for other people's property. For instance if you hit another person's car or damage city property like a guard rail or traffic sign your property damage coverage on your car insurance will cover the damages up to the limit listed on your policy.
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protecting other people's property and medical expenses is important for your own financial protection. Without it, you can be sued for the damages.
Other Important Coverage
You want to protect your own property too. You will need to purchase physical damage coverage so you are protected against major expenses of car repairs if you cause damage to your vehicle or some other outside factor causes damage to your car.
Collision coverage pays out when you damage your vehicle in a collision whether it is with another vehicle, a tree, or mailbox it does not matter. Collision will pay out minus your deductible .
Car Insurance Extras
Car insurance policies provide a lot of different optional kinds of coverage which can prove to be important too. However, they tend to cover lower dollar amount claims which leads them to be less important.You will be more likely to be able to cover these expenses out of pocket rather than purchasing the coverage.
Each car insurance coverage has its place on certain policies. It really depends on the driver and what their expectations are of their policy. It is fine to reduce your insurance cost by reducing coverage, but be prepared for the extra expenses when an accident happens.