Mishaps That Can Really Cost You
When you have insurance and are in your car, you could incorrectly be making the assumption that if you are in an accident, you will be covered for damages and injuries.
If you drive, then you have to have your state’s minimum mandated car insurance coverage.
But don’t be fooled into thinking that it will take care of you if you are in a major collision.
If you aren’t insured for all the potential mishaps that can happen while out on the road, you could be leaving yourself extremely vulnerable.
There are many different types of auto insurance coverage policies available that Los Angeles car accident attorneys can help you with. The mandatory insurance only covers the bare necessities to make sure that you can pay for the damages that you do to someone else and for any medical bills, but there are other types of coverage that you might want to add, to be “fully” insured.
These are the different types of insurance coverage types:
Liability insurance
Liability insurance is what is required by law. It protects you against any expenses — either medical or property damage — that happen to another person’s property should you be at fault for the automobile accident. It will also cover your medical costs if necessary.
Uninsured or underinsured insurance
Uninsured or underinsured coverage will protect you if you are in an accident with someone who is at fault and doesn’t hold the mandatory minimum to cover your damages. It also includes instances where there is a “hit and run.”
Direct Compensation–Property Damage
Direct Compensation-Property Damage is a coverage plan that allows you to make a claim when someone does damage to your car.
Accident benefits
Accident benefits are those things outside of the major medical coverage, like funeral expenses, rehabilitation, and loss of income or wages if you have any.
Collisions or upset insurance
Collisions or upset coverage will protect your car if you are in a collision and you are at fault. Without this specific type of coverage, if an accident is your fault then you will be responsible for the damages done to your own vehicle. Many people driving late-model automobiles choose not to take out this additional policy and roll the dice about fixing their car damages.
Comprehensive damage insurance
Comprehensive damage is coverage that will pay for anything outside of an accident. Things like acts of nature or vandalism resulting in damage to your vehicle are covered under this type of coverage.
How are premiums calculated?
You get a price quote for what it will cost you annually to take out the mandatory policy, and then you can add additional coverage as you see fit. Many factors determine what you pay when you take out insurance.
Overall, the insurance company uses these factors to calculate the amount of risk they have when insuring you that will increase the likelihood that you will be in an accident.
Things included as factors in calculating your premium are:
The kind of car you drive – The more expensive it is to replace your car, the higher your insurance will be. Also, if you are going to own and drive a car that has a higher probability of being in an accident — like a Jeep Wrangler or sports car — the insurance company will charge you more because they are potentially assuming more risk.
Your driving record – Your driving history has a huge influence on what an insurance company will charge to insure you. If you have a long history of fender- benders or other car accidents, you are going to pay more.
Your driving habits – Insurance companies take into account whether you drive a long way to get to work or do a lot of other driving. The more you are on the road, the more likely it is that you are going to get into an accident and the more your insurance will cost.
Where you live – Where you live has a major impact on your insurance premium. Regions that have conditions like snow and ice will cost you more. Also, if you live in a bad neighborhood or high-crime area, vandalism is going to be more of a concern.
Things about you – Things like your gender, your age, and your socioeconomic status are all factored into what an insurance company will charge you in premium costs.
If you want to make sure that you have the right type of insurance to insure you for things you are likely to encounter, you should talk to an insurance carrier to make sure that you have the best policy to protect you if something should happen to you or your car.