Auto insurance can be one of the most important protection policies that you have. However, you may not realize many important facts about these insurance policies. Without this information, you could severely underestimate the amount of protection that your current insurance plan is providing you.
A Liability Auto Insurance Policy Protects Other Drivers
One of the more important things that you should be aware of when it comes to auto insurance is that a standard liability auto insurance policy is not designed to protect you against property damages. Rather, these policies are designed to protect other drivers in the event that you cause an accident. With this type of insurance, the other driver can be guaranteed that they will be compensated for the damages, regardless of your current financial situation.
While liability coverage protects other drivers from damages you cause, it will also protect you against lawsuits stemming from the accident. However, if you are wanting to protect yourself against the full range of costs that can be incurred by being in an auto accident, there are addendums that should be added to your policy, such as uninsured motorists coverage, rental coverage, and theft protection.
Standard Liability May Not Be Sufficient For Medical Expenses
It is common for liability plans to also offer some personal injury protection. Yet, you should be aware that the policy limits for personal injuries for liability policies will be fairly low. Considering the extremely high costs of care, it can be possible for these policy limits to be hit fairly quickly in the treatment process.
If you are wanting maximum protection against being liable for the costs your insurance does not cover, it may be necessary to purchase a personal injury policy, as these have much higher limits that can accommodate the costs of treating serious injuries.
Family Members May Not Be Automatically Covered By Your Policy
Many individuals will assume that their immediate family members will always be covered by their auto insurance policy. However, it is important to note that changes in your family status may need to be reported to the insurance company. This can be particularly applicable to those that have recently gotten married or had a child become old enough to drive. In both these situations, failing to notify the insurance company could result in accident claims being denied and policy revocation. Luckily, adding these individuals to your policy will be a fairly simple task that will only take a few minutes of speaking with your insurance agent to complete.