Posted by Roger Harkins on Wed, Sep 24, 2008
Car insurance is a necessary yet expensive evil that all automobile owners just can’t go without. Even though sometimes it may be tempting to just cancel your policy and take a ride on the wild side, it is extremely unwise to forgo coverage altogether. However, depending on your vehicle and the state you live in, you may not need to purchase the most comprehensive plan on the market. Tri-Star Insurance Professionals Inc. in North Dallas, Plano and Frisco can help you choose a policy that will fit your needs without draining your wallet.
For most people just getting the bare minimum in insurance requirements is top priority such as liability insurance, which is required by most states. In the event of an accident, if you are judged to be the legally liable party, then you are at risk of being sued for the full cost of damages, which may include property, medical and lost income. Liability insurance protects you up to a certain amount from any negative financial impacts that a lawsuit may impose upon you. Unfortunately, if the total cost of damage exceeds the amount of your liability insurance, you might have to face paying out of pocket expenses. State liability coverage requirements differ greatly and are always specified as the minimum amount. It is up to you whether or not you want to raise the amount for extra protection.
Another form of coverage you may want to consider is collision coverage, which pays for the repair or replacement of your car regardless of who is at fault in an accident. The amount of coverage available depends on the market value of your car and how much it would cost to repair it. This kind of coverage is usually unnecessary for older cars because the coverage is limited to the cash value of your car, which may not be much. In some cases a deductible may even exceed the worth of an older vehicle. However, if you feel you need this kind of coverage and want to keep your premiums low, select a larger deductible that you are sure you can afford to pay out of pocket.
If your car is ever the unfortunate victim of a theft or subjected to the wiles of Mother Nature such as a flood, fire or animal attack, then a comprehensive plan will pay to fix your vehicle less the deductible you have chosen. This kind of coverage is perfect for people with newer cars because they are worth more. Also, if your car is leased the finance company will most likely require you to carry comprehensive coverage.
Whether or not you drive a luxury sedan or an old beater you should always consider purchasing Personal Injury Protection (PIP) even if you live in a state that does not require you to have it. PIP not only covers your own medical expenses in the event on an accident, but also any insured passengers. This kind of coverage is especially important for people that don’t have sufficient health insurance.
Always remember to study up on available insurance policies so that you don’t end up paying for unnecessary coverage. The experts at Tri-Star Insurance are willing to help you pick the perfect policy. Just call 214-387-0600 today!
Related Links
Insurance Information Institute
Consumers Union
Texas Department of Insurance