Your car may be one of your most relied-upon possessions. Automobiles are integral to your daily routine, including running errands and commuting to work, as well as taking longer trips. But like any significant financial investment, motor vehicles also include many risks and exposures. Furthermore, costly accidents may occur while you’re behind the wheel regardless of how safe and responsible a driver you are. With these factors in mind, it’s essential to understand and maintain suitable auto insurance.
Why Is Auto Insurance Important?
An adequate auto insurance policy is essential for any owner or operator of a motor vehicle and may provide the following benefits:
- Legal compliance—Although laws may vary by state, U.S. drivers are generally required to carry certain minimum levels of auto coverage. Failure to do so could lead to costly fines, penalties and even jail time.
- Financial protection—Auto insurance can provide critical financial assistance in response to incidents involving your car, including repairs, medical expenses and liability.
- Peace of mind—By having adequate auto insurance, you can limit your stress levels while driving with the knowledge that you are financially protected in the event of an accident.
- Lender requirement—If you have an auto loan, your lender may require you to maintain certain minimum levels of coverage.
What Auto Insurance Coverage Should I Have?
Auto insurance can be tailored to suit your unique circumstances, needs and budget. Still, while the details of these policies may vary, it’s advisable to include the following coverages:
- Liability coverage—This coverage is legally required in many states and can help pay for third-party bodily injuries and property damage for which you are at fault.
- Collision coverage—This coverage may render financial aid for repair or replacement costs if your vehicle is damaged after striking another automobile or a stationary object, such as a building or fence.
- Comprehensive coverage—This coverage can provide financial assistance in response to incidents damaging your car that are not included in collision coverage, such as fires, vandalism and severe weather events.
- Personal injury protection—This coverage, also known as PIP, can compensate you and your passengers for medical expenses and lost wages arising from accidents, regardless of who was at fault.
- Uninsured/underinsured motorist coverage—This coverage can help pay for your losses if another party is at fault for an incident but lacks sufficient insurance.
How Much Auto Insurance Do I Need?
Minimum liability coverage limits are generally required for all drivers, although amounts may vary among states. Some states may also have additional requirements, such as personal injury protection coverage and uninsured/underinsured motorist coverage. If you finance your car, your lender may also have specific coverage requirements. Even in the absence of legal obligations, it’s advisable for you to maintain robust auto insurance. Without sufficient coverage, a single tire slip or lapse in attention could lead to catastrophic losses you must pay out of pocket.
Get the Right Coverage
With over two decades of serving Revere and the surrounding areas, the dedicated staff at R.M. Cataldo Insurance Agency is well-equipped to help you assess and address your auto coverage needs. Contact us today to get started.