When Should You Increase Your Auto Insurance Coverage?
- By Admin
- •
- 17 Jan, 2019
- •
Don't treat your auto coverage limit like a static factor. Just like auto insurance rates fluctuate with changes in circumstances, your auto insurance limit should also change with your circumstances. Know when to buy or decrease your coverage limits to ensure necessary and maximum protection. If you're unsure about your coverage, check out these life circumstances that definitely call for more auto insurance.
If You Modify Your Car
Standard auto insurance doesn't cover modified cars; many auto insurance carriers specify car modifications that their standard coverage excludes. Most carriers will not cover any modification that structurally alters the chassis, body, or frame of the car. Many carriers also don't cover modifications that cost thousands of dollars or increase the risk of an accident.
If you have modified your car, contact your carrier if you are not sure whether your coverage still applies. You may have to buy supplemental coverage for your car if the carrier confirms that your policy doesn't cover the modification.
If You Use Your Car for a Side Business
You also need to buy additional auto insurance if you start to use your personal car for business purposes. A standard personal auto insurance coverage only applies when you use your business for activities that don't earn you income. The only exception is your work commute, which is covered under personal auto insurance.
However, you need additional coverage if you use your car to deliver pizza, sell things door-to-door, or for livery. Ask your carrier if you need to buy an endorsement or commercial auto insurance coverage to maintain your protection at all times.
If Your Teenager Gets a License
The disproportionate number of accidents that teenagers cause is often due to their inexperience and affinity to risks. The risk that a member of your household will cause an accident increases when your teenager acquires their driving license.
Therefore, increase your liability coverage when your teenager starts to drive or when a teenager with a driving license joins your household. The increased coverage will protect you from the accidents your teenager might cause until they become an experienced and safe driver.
If You Increase Your Assets
You should also increase your liability coverage if your asset base increases. The liability coverage comes to your rescue if someone holds you liable for their auto accident. If an accident victim sues you for damages beyond your liability coverage limit, then they can come after your personal assets to bridge the gap.
If you don't have substantial assets, then you don't have to worry about liability lawsuits because you can't lose what you don't have. If you have gathered substantial assets, however, increase your liability coverage to shield those assets from lawsuits.
If You Lose Health Insurance
Auto insurance also pays for some of your medical bills in case you sustain injuries in an auto accident. Medical Payments (MedPay)coverage and Personal Injury Protection (PIP) are the portions of your car insurance coverage that pay your medical bills in case of an accident.
You can make do with minimal MedPay or PIP limits if you have a good health insurance plan. However, increase your MedPay or PIP limits if your health insurance is not that great or if you lose your health insurance. You will need the increased coverage to meet the shortfall your lack of health insurance creates in case of an accident.
Talk to Harr &Associates Insurance, Inc. if you want to increase or decrease your coverage. We can help you evaluate your circumstances, advise you on the suitable coverage,and help you buy the coverage at a reasonable cost. Contact us today for all your car insurance needs.
If You Modify Your Car
Standard auto insurance doesn't cover modified cars; many auto insurance carriers specify car modifications that their standard coverage excludes. Most carriers will not cover any modification that structurally alters the chassis, body, or frame of the car. Many carriers also don't cover modifications that cost thousands of dollars or increase the risk of an accident.
If you have modified your car, contact your carrier if you are not sure whether your coverage still applies. You may have to buy supplemental coverage for your car if the carrier confirms that your policy doesn't cover the modification.
If You Use Your Car for a Side Business
You also need to buy additional auto insurance if you start to use your personal car for business purposes. A standard personal auto insurance coverage only applies when you use your business for activities that don't earn you income. The only exception is your work commute, which is covered under personal auto insurance.
However, you need additional coverage if you use your car to deliver pizza, sell things door-to-door, or for livery. Ask your carrier if you need to buy an endorsement or commercial auto insurance coverage to maintain your protection at all times.
If Your Teenager Gets a License
The disproportionate number of accidents that teenagers cause is often due to their inexperience and affinity to risks. The risk that a member of your household will cause an accident increases when your teenager acquires their driving license.
Therefore, increase your liability coverage when your teenager starts to drive or when a teenager with a driving license joins your household. The increased coverage will protect you from the accidents your teenager might cause until they become an experienced and safe driver.
If You Increase Your Assets
You should also increase your liability coverage if your asset base increases. The liability coverage comes to your rescue if someone holds you liable for their auto accident. If an accident victim sues you for damages beyond your liability coverage limit, then they can come after your personal assets to bridge the gap.
If you don't have substantial assets, then you don't have to worry about liability lawsuits because you can't lose what you don't have. If you have gathered substantial assets, however, increase your liability coverage to shield those assets from lawsuits.
If You Lose Health Insurance
Auto insurance also pays for some of your medical bills in case you sustain injuries in an auto accident. Medical Payments (MedPay)coverage and Personal Injury Protection (PIP) are the portions of your car insurance coverage that pay your medical bills in case of an accident.
You can make do with minimal MedPay or PIP limits if you have a good health insurance plan. However, increase your MedPay or PIP limits if your health insurance is not that great or if you lose your health insurance. You will need the increased coverage to meet the shortfall your lack of health insurance creates in case of an accident.
Talk to Harr &Associates Insurance, Inc. if you want to increase or decrease your coverage. We can help you evaluate your circumstances, advise you on the suitable coverage,and help you buy the coverage at a reasonable cost. Contact us today for all your car insurance needs.
While funeral expenses are a good use of life insurance, they are not the only option. Here are ways your loved ones can use your life insurance benefits.
Alcohol can lead to damages and injuries, which need to be covered by insurance. Make sure you have the insurance you need to protect your business today.
Read this helpful guide for an explanation and better understanding of the key factors that determine the cost of your life insurance premiums.
Having your first child is a momentous event that brings many changes. If you're beginning a family, consider these three insurance coverages.
Consider business insurance a necessity from the very start. Learn about some considerations on where to start with insuring your small business.
If you're not sure whether you should buy a new policy or keep things as is, take a look at what you need to know about changing your deductible.
Winter isn't the only time of the year that comes with driving hazards. Look at the top risks that drivers often face during the spring and summer months.
Are you a first-time life insurance buyer? Learn what you need to know about how to choose the life insurance policy that's best for you.
Road hazards are often unavoidable, but you can take some steps to avoid them. Learn how you can prevent damage and protect your car.
The type of car you drive is one thing that determines your auto insurance rates. Learn more factors that make some cars attract higher or lower premiums.
