So You're Buying Car Insurance - Do You Know What You're Getting?

October 21, 2009

If you're looking at starting or switching insurance coverage, make sure that you know exactly what you are getting and to what extent you are covered.

October 21, 2009 /24-7PressRelease/ -- So You're Buying Car Insurance - Do You Know What You're Getting?

Article provided by John R. Fuller Attorney at Law
Visit us at http://www.personalinjuryco.com

Most drivers know that insurance is necessary, but aren't completely familiar with the different types of insurance and what they cover. This is meant as a brief, top-line overview of the various car insurance options and what they provide you with.

Liability Insurance: There are two things to remember about liability insurance:
-This is insurance that covers another driver's expenses if you cause an accident.
-Liability insurance will not cover your vehicle damage or medical bills for you or your family.
- Key Point: Liability insurance is required in all 50 states for a reason -- don't be stingy with it! If you cause damages that exceed the amount of coverage you have, you may be personally liable for the additional damages yourself.

While liability insurance is required, when it comes to self-coverage, there are no regulations. This is why you must be sure that you invest in insurance that will cover you, your family and your property in the event of an accident.

Comprehensive Coverage: Comprehensive coverage primarily pays for damage to your vehicle, or other property, in the event that you or another driver is responsible for the accident.
- Key Point: It's called "comprehensive coverage" because it can cover both your property and that of another driver regardless of who causes the accident. The thing to remember about comprehensive coverage is that it only covers property -- medical bills are not eligible.

Uninsured or Underinsured Motorist Insurance (UM/UIM): Some say more than one in seven at-fault drivers are completely without insurance. Many injured victims of these accidents are stunned to find out their own insurance may offer no coverage for their injuries. If the responsible driver has no liability insurance, or doesn't have enough, you could be left footing the bill. UM and UIM are coverages that protect you if injured in an accident caused by someone without insurance.
- Key Point: UM/UIM insurance is the most important piece of your insurance coverage in that it protects you and your family in the event of an accident caused by someone without insurance. Make sure you never waive this valuable insurance.

Medpay: As of January 2009, Medpay is mandatory for Colorado drivers, unless they opt out of it. The purpose of Medpay is to cover the initial emergency medical expenses following an accident. Any balance may also be used for non-emergent care following your accident. Do not waive Medpay. Even if you have a separate health insurance policy, waiving Medpay can have significant financial consequences in the event of an accident. 
- Key Point: Medpay only covers you and any eligible passengers. It does not cover the other driver or their passengers and they cannot make a claim against your Medpay policy -- even if you caused the accident.

Driving without insurance is dangerous and can be very costly. If you're looking at starting or switching insurance coverage, make sure that you know exactly what you are getting and to what extent you are covered. Often what seems like a "deal" on the internet is only a "deal" because valuable coverage is being left out. Don't let the joy of saving a couple of bucks result in valuable and important benefits being lost when you need them.

Article provided by John R. Fuller Attorney at Law
Visit us at http://www.personalinjuryco.com

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