The majority of states require that drivers have insurance coverage so that they have a policy in place to help pay for the damages they may cause to others, and also for property damage they may cause in a car accident.
In addition, there are other types of coverage to help recover these expenses. This article focuses on property damage to cars.
The basic type property coverage for automobiles includes: property damage liability which covers an at fault driver for damages they cause to the property of another person. So for example, if the at fault driver damages the other person's car in the collision, this coverage will pay for the repairs or replacement of the damaged property up to the policy limits. The best practice for the person carrying the policy is to carry enough coverage to cover the damages they may cause to property or other people. While it is difficult to know in some circumstances how much insurance coverage to carry, given that the average cost of the vehicle has risen over the years, and many vehicles cost between $30,000.00 and $50,000.00, it would be wise to carry limits high enough to cover this risk.
Another type of coverage that is available is collision coverage. Collision coverage provides the insured financial protection in case the insured's car is damaged in a car accident by another driver. This coverage is particularly useful on newer and higher valued cars. Depending upon the amount of the premium of the insurance, it may be advisable not to carry this coverage on an older vehicle that has a limited value.
Comprehensive coverage is also available in most states. Comprehensive coverage provides financial protection to the insured for damages to their vehicle for non accident damages providing broader protection than collision coverage. This coverage is also most advisable if the value of the car is high, and makes less sense as the value of the car depreciates and the cost of carrying the insurance may outweigh the gain in the event a claim must be made.
Many states also offer uninsured motorist property damage coverage. Insureds whose car is damage by a driver who has no insurance can receive money to pay for their property damages under this coverage. In many states, similar coverage is also available which is called underinsured motorist property damage coverage. This insurance coverage helps the insured collect when an accident is caused by a driver whose insurance policy is not enough to cover the full extent of the damages to the victim's property.
Each of the types of coverage listed above may be appropriate for your individual situation. Unfortunately, in almost all states the mandatory insurance that is required is inadequate to cover typical personal injuries and property damages that are incurred in today's car accident cases. While mandatory auto insurance is a good idea and the states governments who mandate it should be commended, they have failed to increase these limits to keep pace with inflation. As a result, if you are injured in a car accident through no fault of your own, it is likely that the other motorist will not have enough insurance to cover your medical bills, medical expenses, and property damage.
There is also a national problem of motorist who drive without insurance, even though to do so is illegal in almost every state. You should consider purchasing appropriate levels of insurance coverage not only to protect yourself from a lawsuit if you injure someone else, but to add the appropriate coverages to your own insurance policy to protect you and your family in case you are injured by someone else, or your property is damaged. Don't leave your family's financial protection to chance.
