Everyone talks about how to save money on car insurance, and although some of the advice is good, if taken as a whole, it is easy to become underinsured. The lesson is clear. If you want to save on car insurance, you first need to know what coverage you need and then determine if you have this coverage. The following are a few examples of how you can be underinsured.
You don’t have enough liability
There are state minimums for liability and property damage, and these may be fine if you don’t have a lot of money or assets. However, over time, you may accumulate assets, and your overall net worth has increased substantially. At this point, if you were to get into an accident, it is possible for someone to bring a civil action against you if they believe their personal injury goes well beyond your insurance coverage. When you don’t have much money, you are virtually lawsuit proof, so a person in an accident must learn to live with the insurance money that is paid out by your minimum coverage policy.
You don’t have enough comprehensive coverage
Sure, you have collision. If you get into an accident with another car and it is your fault, or perhaps you simply drive into a tree, your collision will cover the damages. However, there are many instances of damage to your car that you may not have adequate coverage for. Often it is in the area of weather damage that your policy may be insufficient. Wind damage is one example. You are driving through a windy area that has heavy winds and this produces sand hitting your car. This hurts the car paint or creates pitting in the windshield. Another example is that sometimes your policy’s coverage for damage due to vandalism is not covered, or at least not covered to the extent you thought it was.
You need to take a look at the coverage you currently have, and contact a car insurance lodi ca agent to discuss what coverage you need or the coverage you need to increase.