Entries Tagged 'Auto Insurance' ↓

Auto insurance and medical liability, all you need to know.

When all is said and done what is car insurance for? Depending on your background or view on insurance in general you might have a variety of opinions. You might think that car insurance is for pessimists. You might think that car insurance is part of a government conspiracy with big business to force to pay for things you don’t need. You might think that it is a necessity and that you can’t spend to much for good car insurance.

Let’s analyze these views with the issue of medical liability firmly in the limelight of our discussion.

Car insurance is only for pessimists. It is true that you only need car insurance if you have an accident. And that to plan for an accident might appear to be pessimistic, but the fact is that we are very likely to be involved in an accident, however small. The society we live in is blame driven and even a small fender bender can cost outrageous amounts of money if you go to court or simply in medical expenses.

Car insurance is just an excuse to pass our hard earned money to big business. Admittedly few people actually believe this but many act as if insurance is a waste of time and practically useless. I have friends that have no qualms in driving their car without insurance, just taking their chances. This is crazy. Skydiving is a walk in the woods compared to this. 1) Because skydiving is fun, being involved in an accident without insurance is not. 2) Skydiving is safe compared to driving. The chances of crashing when driving are much higher.

To convince yourself of the importance of carrying car insurance, picture this scenario. You are driving down the road and stupid kid runs right in front of you. You have no time to break and you crash into him. There was no chance you could have seen him, he came right behind a parked truck. However he did run over a pedestrian crossing and you are in the wrong. You go to court and you are deemed responsible for 500,000 dollars for medical expenses and long term disability. Your car insurance covers you up to 250,000 $ you are still a quarter of a million dollars in the red. Could you cover that cost? Me either. Car insurance does not seem that silly anymore, does it?

If you think car insurance is a necessity you are completely right. This does not mean you should pay silly money for it.

Medical liability is an important aspect of car insurance and one of the reasons it is so vital. Cars being such dangerous machines it only makes sense to have some protection in case you, your passengers or other people are injured. At least this way you have some chance of getting medical attention and being able to return to normal life. In countries without a social insurance medical assistance it could mean the difference between life and death, or between quality of life and none at all.

Premium estimates in auto insurance, a good idea.

Too often we contract auto insurance like we are buying cereal at our local corner stone. “Yes, that one looks good, it says it is healthy, help you lose weight and is full of chocolate”. Just like it is a good idea to compare prices when you are shopping for a house, a car or an engagement ring, car insurance is an expensive and vital part of the life of any driver. Car insurance is not a tangible asset but can save all your other assets. Without good insurance you could lose everything you have if you are liable for an accident and you don’t have suitable protection. On the other hand, if your protection is great but you are paying a high premium, you might be spending more on insurance than your car is worth. As the Spanish proverb goes: “You don’t kill flies with cannon balls” you want to get the right tool for the right job. This article is all about how you can do that without losing too much money and time in the process.

As with any worthwhile endeavor, one  must plan ahead for it to be successful. In the case of auto insurance this will mean deciding what your priorities and auto insurance needs are. If you are not sure what we mean by this I recommend you read our other articles on this blog that give more information on specific types of coverage. Here is a brief summary. There are three main kinds of auto insurance coverage.

1) The coverage you receive for damages to your car when it is your fault, what is called Collision Damages coverage. This coverage is rather expensive because it binds the auto insurance company to cover your damages even though it might be your own fault for bad driving and insurance companies always like to involve the policy holder in sharing the risk and making them responsible for their own actions as much as possible. It is a good idea to think how much your car is actually worth. If it is a new car it might be a good idea to place some importance on this coverage. If it is a second hand car that is not worth much more than 2000$ it might be cheaper to save money on this type of coverage.

2) The coverage of any liability for damages caused to others. This is the most important type of insurance as it can save you from bankruptcy. Any personal and material damages you cause with your vehicle are your responsibility and without this coverage you are in serious trouble. Make sure this insurance coverage is at least over the minimum set by the state or country you live in, and as high as you can reasonably afford.

3) Medical coverage will pay for any medical expenses that you incur in an accident even if you are at fault. This type of coverage is important as you or your passengers might not be able to afford treatment without it.

Plan ahead, ask for premium estimates with the options you decide you need and enjoy your ride with the peace of mind that good insurance brings.