The need for car insurance protection is crystal clear, but what isn’t often as apparent are the benefits beyond safeguarding your investment.
Your car insurance policy should be an upfront priority. What you might not realize is that this seemingly standard purchase comes replete with several valuable extras — especially if you opt for high-end coverage.
Liability coverage is an invaluable asset in protecting your assets and insuring your peace of mind. Even though liability limits vary by state, the bare minimum most insurance carriers recommend is $100,000 per person up to $300,000 per accident. This means that if you cause a car accident that causes injury or death to another individual, you will be held liable to pay for these costs, which can amount to several million dollars.
2. Protection from uninsured or underinsured motorists
Maintaining adequate liability coverage is extremely important when it comes to protecting yourself from other drivers on the road with insufficient insurance — after all, there are plenty of folks out there who either cannot afford car insurance, or who have been denied coverage from major car insurance providers.
In most states — including Virginia and Maryland — you can opt to increase your liability coverage beyond the standard $100,000/$300,000 to protect yourself against uninsured motorists who do not qualify for traditional plans.
3. Comprehensive protection
You might be tempted to ditch comprehensive coverage, since it doesn’t protect against collisions or bodily injury — but that would be a huge mistake.
Comprehensive protection will reimburse you for damages to your car not caused by an accident with another vehicle, including lightning strikes, vandalism and floods. And because the deductible for this type of policy is significantly lower than liability coverage, comprehensive insurance can help save you money.
4. Towing and labor
If your vehicle breaks down on the road or is involved in an accident, towing and labor can help protect against hidden costs associated with getting your car back up and running again. Although many insurance carriers require you to schedule all auto repairs through them, they may even go as far as offering to tow your vehicle for you.
5. Vehicle rental reimbursement
In the event that your car is rendered inoperable due to a covered loss, many carriers will reimburse you for a rental car while yours is being repaired — and this includes weekend rentals, in some cases.
6. Personal injury protection
Personal injury protection can be extremely valuable, especially if you never expect to need it. This coverage reimburses you for medical expenses and lost wages resulting from a car accident involving yourself — as well as passengers in your vehicle.
7. Transportation expense reimbursement
You can save money on gas and public transportation by filing a claim with your insurance company after a covered loss has occurred.
8. Accident forgiveness
Here’s a little-known fact: if you have an accident-free record for ten years or more, your car insurance rates won’t increase after the first at-fault claim under certain plans. As long as you’re accident free, most carriers will consider this “accident forgiveness” when determining your future rates.
What is the benefits of car insurance for large sums?
The benefits of car insurance for a large sum include liability coverage of up to $100,000 per person and an additional option to increase your liability coverage beyond this amount. Additional options may also include comprehensive protection, vehicle rental reimbursement, personal injury protection and transportation expense reimbursement.
What is the difference between liability and no-fault coverage?
When you carry only the state minimums for car insurance, your provider will handle claims resulting from collisions with other vehicles or natural features on a no-fault basis, meaning that you are not held responsible for any expenses. If you carry higher liability limits, your insurance carrier will handle claims on a claim-payable basis, which means that you’re financially responsible for damages if the other vehicle is uninsured or underinsured.
What is the difference between comprehensive and collision coverage?
Collision insurance is purchased to cover damage caused by collisions with other vehicles or natural features, such as trees or guard rails. Comprehensive insurance is purchased to cover damage caused by much more than collisions and may include vandalism and weather damage.
Who should consider car insurance for large sums?
Everyone who owns a car should consider purchasing additional liability protection through their current carrier or another company. Many consumers opt to increase their limits at renewal time, but you can also purchase additional coverage at any time. You might even qualify for reduced premiums if you have an accident-free driving record.
Are there any disadvantages of car insurance for large sums?
The only disadvantage of car insurance for large sums is that, in some instances, you may be required to purchase more comprehensive coverage than the state minimums.
As You Can See
I’m sure you can think of at least one reason why car insurance is important. We hope this list has helped to clarify the importance of obtaining coverage for large sums in your vehicle. The next time you see a commercial or someone talks about their policy, hopefully it will be easier to make an informed decision on what type and how much coverage is right for you! And if not, feel free to comment below with any questions; we are always available to help answer them!