Every day someone is involved in an auto accident. In some of those accidents, regardless of who is at fault, there is a chance that the type of insurance policy that each person has is misunderstood. Also, there are people who cause accidents that don’t have insurance at all which is illegal. So how does anyone know what type of coverage they have and what it does? One would think that an issue like that is solved when the policy if first created. However, there are people who really do not know if they have the right insurance policy. If they do know, they probably have the wrong one and are unwilling to change it because it’s cheaper.
Full Coverage
Full coverage insurance is optional in one case but not in others. When anyone decides to finance a vehicle whether it’s new or used, it can not be driven off the lot if the buyer does not have full coverage insurance. The reason behind this is because of an accident occurs and the car is totaled, the dealership needs as much of their money back from the loss of the vehicle as they can get. To lose a car that $15,000 to $20,000 is a huge loss to any business. Plus, if the victim of the accident is injured, they can use their rider policy to get their medical bills taken care of in the event that the perpetrator of the accident does not have insurance. Some people forget to look at the different rider policies they should have when it comes to having full coverage which leads to them not having the right insurance. They may not know that there is a policy that can be added for every driver that gets behind the wheel to be covered along with a policy to get the windshield replaced in case of storm damage. It’s all a matter of really looking at all of the different policies that could make up the full coverage that one might need.
Cheating On The Policy
There are consumers that will take a huge gamble. What they will do is go to a dealership and finance a vehicle new or used and will get a full coverage policy right there in front of the salesmen to drive the vehicle home. However, once they have sealed the deal, they will cancel that policy and get liability because it’s cheaper. Why go that route if it’s not affordable? Why not wait till both the car payment and the insurance premium can be paid without stress instead of taking a huge risk? The people that do this clearly don’t have the right coverage.
Liability Coverage
Liability coverage is for people who pay for a vehicle outright with cash. It is paid in full so they just need liability coverage to protect other drivers on the road. If they have the bare minimum as required by law and get into an accident, once the vehicle is totaled, there is nothing that can be done if the other party involved who was responsible for the accident doesn’t have any coverage at all. Liability insurance is mainly for vehicles that have high mileage and are really not going to last no more than three years in operation. An insurance subsidiary can be added on if needed.
Having the right insurance coverage is very important. It’s all about staying in compliance with the law when driving on the roads. Not having insurance can have serious consequences. People should look at the accuracy of their policies.
