John Edwards discusses what car insurance you should buy and describes some of the differences between types of coverage.
What Car Insurance Coverage Should I Buy?
If you’re an adult, and you can pay for it, you should get all the coverage you can. When you’re buying car insurance, you’re protecting you and your family. By law in Idaho, you’re required to purchase $25,000 for those people you hit. Beyond that, you’re buying coverage to protect you and your family.
Idaho Law Requires Liability Coverage But There is More Car Insurance You Should Purchase
The law requires you to have liability insurance. After that, buy some level of medical payments coverage. It pays the medical expenses of your passengers. It doesn’t pay pain and suffering, but it does pay medical bills. If you’re a soccer mom, and you’re hauling a lot of other kids, some may not have health insurance. So, carry a little higher medical payment’s coverage. It typically comes in denominations of $1,000, 2,000, $5,000, $10,000, or even $25,000.
It’s essential to carry uninsured motorist coverage as it protects the people in your car through the fault of someone who is not insured. Those most likely to cause an accident are irresponsible and are going to be the same people who don’t have insurance. Additionally, you’ll want a coverage called underinsured motor vehicle coverage. If you’re in an accident and it’s the fault of someone who doesn’t have enough insurance, then your passengers are covered. It needs to be at least $100,000 worth of coverage. While that sounds like a lot of money, $100,000 does not go very far for a hospital stay. Let’s say you’re hit by somebody who only has $25,000 in coverage, and doesn’t have a lot of assets; then you need extra insurance to cover the people in your car. Also, get collision coverage. If someone who crashes into you doesn’t have sufficient, or no insurance, then it will pay for the repair or replacement of your vehicle.
If I let a buddy of mine borrow my car, and he gets into an car accident. What happens there?
He is an insured under your policy, and it’s the same as if you were driving the vehicle. The coverage is on the automobile, and as long as he is driving with permission, then he’s covered. If he was using the car without permission, then he’s not covered. However, you’re not liable.
What if I get in an accident and I only have liability? What happens then?
You’re in trouble. I tell anyone who asks not to buy just liability coverage. For some people, what car insurance they can buy is limited and that is all they can afford as they’re on a tight budget. But, liability coverage only protects the people you run into. However, if you’re at fault, then your liability insurance protects the people in your car as they would be victims of your negligence. But if you only have liability, and you’re in a car accident, and it’s the other sides fault, and they have no or limited insurance, you’re stuck with what little, or no coverage they have.
How About My Medical Bills If I Have Just Liability Coverage?
Because you didn’t buy medical payment’s coverage, you don’t have access to that coverage. Hopefully, you have health insurance so you can run your medical bills through your health insurer. But if you have no health insurance and you have no medical payment’s coverage, you’re going to have hospitals and doctors knocking at your door through collection agencies.
Call Attorney John Edwards for a free case review at (208) 343-7510