Why should you purchase automobile insurance?
First, because State law requires it. All drivers in Washington must carry at least $25,000 in liability insurance coverage. If the police stop you and determine that you do not have liability insurance, you may receive a ticket and be required to pay a fine. If you are in a collision and the police determine that you do not have liability insurance, you may lose your driver license!
Second, because you need to protect yourself. There are many types of insurance that you may buy to protect yourself and your family if you are injured. See the sections on Personal Injury Protection (PIP) and Underinsured Motorist Insurance (UIM) for helpful tips about these coverages and the amounts to purchase.
So, how much liability insurance should you purchase? We believe you should have at least $100,000 in liability insurance limits. If you have a job, a home, a retirement fund, or other assets, you should probably purchase more insurance so that you avoid having to pay money out of your own pocket if you cause a serious collision.
There are also other types of insurance coverage that you can buy. The most common is “collision” insurance. “Collision” coverage provides benefits if your car is damaged in a collision. If you don’t have this type of insurance and someone who doesn’t have insurance strikes your car, you will not receive money to repair it. One thing to keep in mind is that collision coverage pays you only for what your car was worth when it was damaged. It does not pay you to replace your car. In other words, if your beloved Honda Accord was 10 years old, its value may be only $5,000. That is the amount of money you will receive if your car is “totaled” (subject to deductibles, of course), regardless of how much it will cost you to replace your car. Talk to your insurance agent and make sure that you have enough coverage and the right kind of coverage for your car.
Adding rental car coverage is important. If your car is damaged and needs repair and you do not have a second vehicle to use in its place, you can often use your rental car coverage. If the person who caused the damage does not have insurance, you will need to use your own coverage.
Automobile insurance is important. It is required. It is the law. Make sure that you have the right kinds – and the right amounts – of insurance coverage. Talk to your insurance agent today.
If you have been injured in an automobile collision, don’t delay, call Nelson Boyd attorneys for a free consultation- (206) 971-7601