Why should you purchase automobile insurance?
First, because the State requires it. All drivers in Washington must carry at least $25,000 in liability insurance coverage. If the police stop you and determine that you do not have liability insurance, you may receive a ticket and be required to pay a fine. If you are in a collision and the police determine that you do not have liability insurance, you may lose your driver’s license!
Second, because you need to protect yourself. There are many types of insurance that you may buy to protect yourself and your family if you are injured. See the sections on Personal Injury Protection (PIP) and Underinsured Motorist Insurance (UIM) for helpful tips about these coverages and the amounts to purchase.
So, how much liability insurance should you purchase? We believe you should have at least $100,000 in liability insurance limits. If you have a job, a home, a retirement fund, or other assets, you should probably purchase more insurance so that you avoid having to pay money out of your own pocket if you cause a serious collision.
There are also other types of insurance coverage that you can buy. The most common is “collision” insurance. “Collision” coverage provides benefits if your car is damaged in a collision. If you don’t have this type of insurance and your car is struck by someone who doesn’t have insurance, you will not receive money to repair your car. One thing to keep in mind is that collision coverage pays you only for what your car was worth when it was damaged. It does not pay you to replace your car. In other words, if your beloved Honda Accord was 10 years old, its value may be only $5,000. That is the amount of money you will receive if your car is “totaled” (subject to deductibles, of course), regardless of how much it will cost you to replace your car. Talk to your insurance agent and make sure that you have enough coverage and the right kind of coverage for your car.
Rental car coverage is important, especially if you don’t have a second car. If your car is damaged and needs to be repaired, you can often use your rental car coverage. If the person who caused the damage doesn’t have insurance, you will need to use your own rental car coverage because no one else will provide you with a rental car.
Automobile insurance is important. It is required. It is the law. Make sure that you have the right kinds – and the right amounts – of insurance coverage. Talk to your insurance agent today.
The attorneys at Nelson Boyd have over 50 years of combined legal experience in representing injured people and fighting insurance companies. If you have been injured, if you have an insurance claim, or if you just have questions about insurance coverage, please contact us at (206) 971-7601. Nelson Boyd – We Care. We Can Help. www.nelsonboydlaw.com
