Auto Insurance: what’s important, what’s not?

What’s important for one person to include in their auto insurance may not be right for someone else. There are many factors one has to consider when choosing the right type of coverage for their car.
If you have a family sedan, you won’t need the high collision coverage a sports car owner might want. If you’ve paid off your older car or you’ve inherited a clear titled car from a relative, you should check the Kelly Blue Book for the value of your car. If it has a low value, there would be no sense in buying collision insurance as your premiums would quickly amount to more than the car’s replacement value.
Liability is absolutely the most important aspect of car insurance. This coverage pays for the repair or replacement of someone else’s vehicle plus their medical bills if you happen to be at fault in a crash. In most states, it’s illegal not to have it! If you are involved in an accident that’s your fault and don’t have liability insurance, you could lose everything.
Uninsured or underinsured motorist insurance is also important if you’re in a crash with a driver that has a very low amount of liability insurance. If you have more expenses than their insurance covers, your own coverage kicks in and picks up the slack. A Property Damage Liability clause will pay your legal costs if your car damages someone else’s property.
With the proper combination of coverage, you can drive secure in the knowledge that whatever happens, everyone will be taken care of.