For many people, motor vehicles are a normal and necessary part of their daily routine. Commuting to work, running errands and taking trips for leisure may all be integral parts of modern lives. However, owning and operating a car also comes with many risks and exposures. With that in mind, it’s necessary to acquire adequate auto insurance.
What Auto Insurance Coverages Should I Have?
Although auto coverage may be a commonly purchased type of insurance, these policies can also vary significantly in regard to their details. In general, an optimal policy will likely include a combination of the following:
- Liability coverage—If you are responsible for an accident, your insurance may help pay for other parties’ losses, including the following:
- Bodily injury—If another party is injured following an accident for which you were at fault, your policy may cover medical bills, lost wages and death benefits.
- Property damage—If you are liable for damaging another party’s property, such as vehicles or structures, this coverage can help pay for repair or replacement costs.
- Collision coverage—This coverage can help pay for repairs if your vehicle is damaged in a collision with another vehicle or a stationary object (e.g., buildings, signposts, guardrails).
- Comprehensive coverage—This coverage can provide financial assistance to recoup losses arising from incidents not included in collision coverage, such as the following:
- Severe weather
- Medical payments (MedPay)—If you or your passengers suffer injuries in an automobile accident, this coverage can help pay for medical costs regardless of who was at fault.
- Uninsured/underinsured motorist coverage—If another party was at fault for your losses but lacks enough insurance to pay for them, your insurance may be able to make up for the difference.
How Much Auto Insurance Should I Have?
In addition to protecting your finances and ensuring that you have access to necessary resources in the wake of an accident, auto insurance is also legally required in most states. With that in mind, it’s necessary for all drivers to ensure they are complying with applicable laws before getting on the road. In the state of Illinois.
Drivers and vehicle owners must also understand that fulfilling the minimal legal requirements for auto insurance may not mean that you have adequate coverage. If the losses from an accident exceed your coverage limits or an incident does not qualify for the details of your policy, your out-of-pocket costs could be devastating.
Get the Right Coverage
Auto insurance can be a complicated subject with many details and customization options requiring thorough analysis. Fortunately, the agents at First Community Insurance and Annuity Center have the expertise and experience to help you understand your coverage needs and acquire an optimal policy. Contact us today to get started.