During a car accident, there is nothing more important that the safety of those in your car, but these incidents can have far-reaching financial consequences. While automobile insurance can help protect you from the financial consequences of these accidents, this type of insurance is often misunderstood. If you lack a thorough understanding of the protection afforded by your policy, you may not be as protected as you think you are. Having these two questions about auto insurance answered should make it easier for you to ensure you are protected from the financial consequences of being involved in an automobile accident.
Is The Legal Coverage Minimum All That You Need To Purchase?
Most drivers are aware that there are legal requirements to how much coverage they must have when it comes to their auto insurance policy. However, it should be noted that this may not be the only requirement you have to meet for coverage limits.
There are many auto loans that require you to carry more insurance than your car is worth until the loan is fully repaid. This is done to ensure that the lender is able to recover their loan if the car is totaled, and you will need to carefully review your loan contract because failure to comply with this requirement can result in the vehicle being repossessed.
Will Your Insurance Cover All The Medical Costs From The Accident?
One of the largest expenses from a major automobile accident can be medical costs. Severe injuries can require extensive treatment, which can quickly amount to a crippling financial obligation. However, many people fail to realize that their policy may have a low limit when it comes to paying for medical costs.
In order to ensure you are protected from these expenses, you will have to purchase a separate policy that is designed solely for the medical costs associated with automobile accidents. These policies will add a small amount on to your monthly premiums, but it may be the only way to ensure that you are not liable for the medical expenses that can arise following an accident.
Your automobile insurance can be the only thing that saves you from crushing financial obligations following an accident. By understanding that you need to check with your loan to determine the amount of insurance coverage you need and the benefits of having a separate policy for medical cost coverage, you will be better able to protect yourself from the effects of these accidents.
Share27 July 2015
