When it comes to protecting you from the financial consequences of an auto accident, insurance can be one of the most effective tools. Many drivers make the mistake of failing to properly understand what type of protection their auto insurance offers them, and this can cause them to inadvertently increase their liability. While you may not be very informed about the details of these policies, having the following notions dispelled should help you to better understand how to get the most from this coverage.
Myth: You Only Need The Legally Required Amount Of Coverage
In order to legally drive a car on public roads, you are required to carry a minimum amount of coverage. The exact policy limits required can vary from one state to another, but there are many drivers that assume this is the amount of coverage they should purchase. Often, this is done in an attempt to save money on monthly premiums, but it can leave you overexposed to risk and liability if you are involved in an accident.
The ideal amount of coverage can vary, and factors such as your personal net worth as well as the size and value of cars will play a large role in determining the recommended coverage amount. To help you choose a sound policy, your insurance agent will be able to breakdown the potential costs of an accident for you to help you better understand how much coverage you should get.
Myth: All Auto Policies Protect Against Theft
Auto accidents are among the more common issues that drivers will have to experience, but this is far from the only threat to your vehicle. Theft is another major concern that any car owner should work to mitigate. Unfortunately, it is common for some people to assume that their standard liability policy will offer them protection against theft. Yet, this is far from the truth because liability coverage only protects you from the damage that your car causes. To be protected against the risk of your vehicle being stolen, you will need to make sure that you have a comprehensive auto insurance policy. These policies are more expensive than standard liability coverage, but they offer enough additional protection to make this small additional costs more than worth paying.
Protecting your car from the assortment of threats that it must face requires you to understand how to get the most from your insurance coverage. To this end, knowing that you may need more insurance coverage than just the legal requirement as well as the fact that standard liability does not offer protection against theft will help you in making an informed decision about how to keep your car as financially safe as possible. For more information, contact companies like All-Coverage Insurance Ltd Auto insurance.Share