6. Auto Insurance
f. Uninsured and Underinsured Motorist Coverage
Many states require this coverage
; but even if it is not required, it is important to have and is relatively inexpensive. This coverage kicks in when the other driver is at fault and does not have any insurance or enough insurance to pay for the damages you suffer — not only the medical bills but also lost wages and pain and suffering. This coverage also applies if you or a member of your family is injured by a hit-and-run driver who is never identified.
This coverage is stated, like bodily-injury liability, as two numbers: One is the maximum amount of coverage for one person, and the other is the maximum coverage for the entire accident. Suppose you have 25/50 coverage: $25,000 maximum for one person and $50,000 maximum for the accident. You are injured in a crash that another person causes, and your medical costs are $15,000. The other person does not have any insurance. In this case, your insurance will cover your $15,000 in medical expenses.
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How to cut the cost of your automobile Insurance
Insurance companies often give discounts on automobile insurance. Listed below are some of the discounts, not all of which are offered by all firms.
- Good driving record
- Over 50 years of age
- Antilock brakes
- Driving fewer than 5,000 miles a year
- Taking a defensive-driving course
- Good student – high school student with a B or higher average in school
- Antitheft devices
- Having a number of insurance policies with the same firm
- Lower-priced, instead of a higher-priced, automobile
- Living in an area with few people, not in an area with a lot of people
- Choosing a policy with a higher deductible
- Having a high credit score