As a driver and owner of a vehicle, having auto insurance coverage is not an option. You cannot legally drive on the road without the mandatory auto insurance, which would be liability insurance. Liability insurance only covers damage to other vehicles and property if you were the cause of an accident. However, liability insurance is not the only type of coverage that auto insurance companies provide. If you want to maximize your coverage and protect yourself from future financial obligations in the case of an accident, you will want to consider these three other auto insurance coverages:
Uninsured Motorist Coverage:
You should consider adding uninsured motorist coverage onto your insurance policy because you never know when you could get into an accident with a motorist who does not have insurance. If this happens, the damage that is caused won't be covered, and most likely, the person responsible won't pay out of pocket unless you take them to court and sue. Having uninsured motorist coverage is going to protect you from this since it provides property damage coverage after being in an accident with an uninsured motorist.
Towing coverage is extremely useful if you are looking to save money on the cost of towing. Hiring a tow truck driver because you cannot get your car to drive safely off the road and to a safe location can be expensive. With towing coverage, your insurance will provide a list of towing companies you can trust that have prices that are covered by your insurance company. This can help ensure that you are also able to afford the repairs that are needed for your car that isn't working properly.
Gap insurance is going to cover the difference between the blue book value of your vehicle and the amount you still owe on the vehicle. This is great insurance to have if you have recently purchased a new car that you still owe a good amount of money on, which is especially the case if you didn't put a large down payment on the vehicle when you purchased it. Doing this will ensure that you are able to replace your car in the case that it is totaled instead of being left without a vehicle and a low insurance payout for the damages.
When you consider these three additional coverages, you can be sure that you are adequately covered, which is going to help ensure that you are not put in a financially stressful situation in the case of an emergency.
Insurance is something that I carry in the hopes that it never has to be used. Along with life coverage, I also have low cost auto insurance and a health plan through my employer. I'm toying with the idea of adding some additional coverage, just in case something happens and I'm no longer around to take care of my family. The question that is on my mind is how much insurance is enough? Do I really need more, or would it be better to cultivate other assets that my loved ones can draw on if needed? If you are in the same boat, let's journey together for a while. Read on and I'll explain what I'm trying and why. Together, we can figure out when it is time to add more coverage and when enough really is enough.