Auto insurance is required in most states, but the minimum liability coverage is often inadequate to protect drivers. Simply sticking with basic insurance leaves you vulnerable.
Minimum liability is not enough
Liability insurance pays for damage you cause to others. But minimum liability limits are shockingly low in most states, often just 15/30/5. Those injured would receive $15,000, and accidents would receive $30,000. A major accident easily exceeds these limits, leaving you responsible for huge out-of-pocket expenses. Bumping up your liability limits to 100/300/100 gives far better protection in case of lawsuits or large claims against you. The extra premium costs are relatively minor compared to the expanded coverage you obtain. Skimping on liability only to save a few dollars each month is a risky move.
Collision covers your vehicle
While liability pays for damage to others, collision coverage helps pay for damage to your vehicle resulting from an accident. All repair costs would be your responsibility if you are found responsible for an accident. With older vehicles, dropping collisions make sense. But for newer cars, it provides essential financial protection. It is important to insuring modified cars in Thailand for damage other than collisions. It includes theft, vandalism, weather events like hail or floods, fire, and collisions with animals on the road. Without comprehensive coverage, you would receive no insurance payout for these common mishaps.
Uninsured and underinsured motorist coverage protects you if you are hit by a driver with no insurance or insufficient limits. Shockingly, around 15% of drivers lack coverage. Minimum uninsured motorist limits are woefully low in most states. Increasing this coverage ensures you have funds to pay for injuries or repairs caused by irresponsible uninsured drivers. Your health insurance does not cover all the medical costs of a car accident. Medical payments coverage through your auto policy provides funds to help cover hospital bills, rehabilitation, and other costs stemming from any injuries to you or your passengers. You will avoid high medical expenses after an accident if you keep this in mind.
Rental reimbursement offers flexibility
After an accident, your car is undrivable for days or even weeks while it is repaired. Rental reimbursement coverage helps pay for the price of renting a replacement vehicle during this downtime. Rent would have to come from your pocket without it. Basic insurance policies do not include roadside assistance. Adding this modestly priced coverage gives you access to help with issues like flat tires, dead batteries, being locked out of your vehicle, or needing a tow. Small investments save big headaches. If your vehicle is totaled, standard insurance will only pay the depreciated market value, often leaving owners owing money if the car was newer. Gap insurance helps cover the difference between what you owe and your auto policy’s payout. A car accident can leave you with big bills if you don’t have gap coverage.