We should all know that it is required by the state of Washington,
while driving a motor vehicle, you must have a minimum liability coverage
of $25,000 per person, $50,00 per accident and property damage protection
of up to $10,000. It is also referred as 25/50/10.
Minimum liability coverage only protects the other party when you cause
the accident. There is a fine if you don’t have a valid proof of insurance
with you when you are asked by a police officer.
However, even in the event that you have no insurance, you are not
automatically blamed, for an accident. Carrying an insurance policy
doesn’t correct anyone’s bad habits in driving (click
here to see if you have case). What it does is, protect your passengers,
the other vehicle and its occupants in an accident caused by you.
The state minimum may not be enough. Its limits vs. the damages you
have caused to the other party and to you and your passengers. In addition
to liability coverage, many people choose to purchase additional kinds
If you are the victim, and the other party is uninsured, for a few
more dollars, you can add a UM (uninsured motorist)/ UIM (underinsured
motorist) coverage to your existing minimum state required liability
policy in order to protect yourself and your passengers in an event
of an accident caused by an uninsured motorist.
Personal Injury Protection provides coverage for you, and any passengers
in your car, regardless of who was at fault. Benefits may include medical
and rehabilitation expenses, lost wages, funeral expenses, and loss
of essential services. State law requires that your insurance company
offer to sell you PIP, but you don't have to buy it. It helps to keep
a copy of all your documentations.
If you already have comprehensive health insurance, PIP might be a
redundant coverage. Most insurers offer securities like rental car reimbursement
coverage and towing coverage. Rental car reimbursement coverage will
pay for the cost of renting a car if your car is stolen or damaged in
an accident that is your fault. For one to two dollars a month, you
can ensure you are not left stranded to rely upon a friend or family
member to shuttle you around while your car is being repaired. Towing
coverage can cover some or all of the cost should your car be disabled
and need the services of a tow truck. For more information, contact
your insurance agent.
You can save yourself a lot of headaches by ensuring you have the right
insurance coverage and options before having to file a claim.
Cheap coverage from a company that offers lousy services, takes forever
to settle its claims, or goes bankrupt is worse than no coverage at
all. Beyond price, you should look at the financial strength of a company,
its reputation for service, and the specific coverage, discounts and
other benefits it may offer. When you are buying insurance, think claim.
You and your passengers must be protected and cared for. The company’s’
reputations in handling claims and its financial strength is very important.
Remember the old saying that “cheap costs more”. Your best source of
information may be your agent. If your agent is not answering your question
and yet tries to give you a cheap coverage, you should take your business
some place else. Just imagine how you are going to be treated when you
have a claim.
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