How do you know how much car insurance you need? It is a question many Shawano drivers find themselves asking when shopping for coverage. The truth is car insurance is not a one-size-fits-all product. In fact, it should be a highly personalized and adapted to meet your unique needs. In this article, we will explore reasons you need the right types of coverage and ample limits.
If Your Car is Stolen, Damaged, or Destroyed
Maybe you have car damage after an accident. Perhaps a storm blew through, tossing hail and debris onto your car. Whatever the cause, physical damages can be very expensive to repair. What would you do if you were faced with thousands of dollars in repairs, or worse – the need to replace a stolen or totaled vehicle? When it comes to covering your personal vehicle against damages, you will need two separate types of insurance protection: collision and comprehensive.
Collision coverage helps pay for repairs to your vehicle if it is damaged in an accident. Whether you are involved in a multi-car pileup or run your car off the road, you can rely on collision coverage to pay for repairs or otherwise compensate you if your vehicle is deemed a total loss.
Comprehensive coverage is designed to cover vehicle repairs and losses caused by events other than collision, or OTC. This includes damages caused by things like inclement weather, deer, or vandalism. It can even help cover replacement of your vehicle if it is stolen.
If you are leasing your vehicle or borrowing money from a lender to finance your car, chances are you will be required to carry both collision and comprehensive coverage. If you own your vehicle outright, physical damage coverage may be at your discretion. However, it is important to consider whether you could afford thousands or even tens of thousands of dollars to repair or replace your car after an accident, theft, or other loss. Ultimately, both types of coverage play an important role in protecting the financial interest you have in your vehicle.
Purchasing collision and comprehensive coverage is easy when you use Feivor Insurance. Simply choose a deductible, and we will take care of the rest. Deductibles may range between $100 and $1,000 depending on the company and coverage type. Typically, a higher deductible will produce a lower premium, but you should only choose an amount you could reasonably afford to pay if you need to file a claim.
Beyond that, there is no coverage amounts to choose from. Instead, your vehicle is automatically insured for its ‘actual cash value.’ However, exceptions may be made for antique cars and collector vehicles, which may be insured for their ‘agreed value.’
You Damage Someone Else’s Vehicle or Property
As a driver in the State of Wisconsin, you can be held financially liable for any damages you cause to another person’s property. Without adequate liability insurance, you could be personally sued for any losses that exceed the limits on your auto liability coverage. State law requires that all drivers carry a minimum amount of property damage liability protection, but it does not scratch the surface of what some accidents can cost.
Imagine, for example; a nurse fell asleep at the wheel on the way home from a late shift at work. She plows through someone’s yard, knocking down their mailbox and fence before slamming into their garage door. She is responsible for the cost of replacing the fence, mailbox, and garage door, as well as repairs to the luxury vehicle that was stored inside the garage. In this scenario, the damages total tens of thousands of dollars – money she would not want to pay out of pocket.
If it were you, how would you pay the bill? Even if the victim’s insurance company initially pays for the damages, you will still be responsible for reimbursing the insurer for the loss. Would you have enough property damage liability to cover the cost, or would you expect to land in court with a lawsuit hanging over your head?
Continue reading part two of “How much car insurance is enough?”