I have always loved cars, but a few months ago I realized that there were a few things that I needed to do. I started evaluating my auto insurance plan, and I realized that it wasn't adequate for what I needed. I began focusing more seriously on choosing better auto insurance, and I spent weeks evaluating different policies. It was pretty time intensive, but I was able to find a great policy that really worked well for what I needed. This blog is here to help you to know how to choose auto insurance so that you can protect your finances.
Auto insurance laws vary between various states and may change what policies you receive and which you need for your vehicle. For example, you might move to a new state that doesn't require underinsured coverage for your car. That doesn't mean you should go without it. In fact, investing in an underinsured auto policy is a smart decision.
A Shocking Number Of People Don't Have Auto Insurance
When you're driving on the road, you probably don't think about the number of people who don't have auto insurance. In fact, most people take it for granted that other drivers have appropriate coverage policies. Unfortunately, that is not the case. Studies have found that about 13 percent of all drivers on the road don't have car insurance. Unfortunately, this lack of coverage puts policy-holding drivers like you in danger, particularly if you move to a state that doesn't automatically require underinsured policies.
Not All States Require Underinsured Coverage
Before your big move, you may have lived in one of the many states that require underinsured coverage. Often, these states have policies that automatically provide this type of coverage with just a little extra cost. However, only 14 states have these kinds of laws.
As a result, there is a good chance you may have moved out of one of these states and into one of the many that doesn't automatically require underinsured coverage. As a result, you may get into an accident with an uninsured person and end up suffering a nasty surprise.
How Underinsured Auto Insurance Helps
When moving to a state that doesn't have underinsured auto insurance as a requirement for driving a car, you should seriously consider getting a policy anyway. This type of insurance comes in two types, including bodily injury and property damage coverage. The names of the policies reveal what kind ODF coverage they provide you as a driver.
Getting both types is wise because if you are hit by a wild driver who doesn't have insurance, you are going to be stuck having to pay your own repair bills. This act is particularly wise if you come from a state where you didn't have to worry about buying specific insurance policies for this coverage.
So, don't hesitate to contact your auto insurance agent about underinsured auto insurance policies right away. While they might cost you a little bit more, most insurance providers will bundle your coverage in a way that saves you money and protects you from financial loss.