What You Can Really Expect To Pay After An Injury Accident

When looking for cheap car insurance quotes, be wary of the coverage that comes with discount car insurance. Discount coverage could come back to bite you in the wallet if you are unlucky enough to get in a car accident. Many drivers look to save money on car insurance by gambling on insurance policies that offer the minimum amount of coverage required by law and by increasing the cost of their deductible. Of course, raising your deductible and lowering your coverage limits will reduce your premium payment, but it could leave you in financial ruin if you get unlucky. Drivers with bare bones insurance coverage are playing roulette with their finances.

Naturally, drivers want to find extremely cheap car insurance quotes, but choosing the cheapest coverage is not always the most financially astute decision. For instance, in some states the minimum required coverage will provide $40,000 in medical coverage to a driver injured in a car accident. Any medical bills related to the car accident will have to be covered by the driver. For some policies, this $40,000 represents the total amount the insurance company will pay toward all medical bills. If your car gets in an accident with a minivan carrying a family of 4, it is easy to see how this maximum could be exceeded. In some cases, the medical bills could be over $100,000. The driver of the car would be responsible for the difference. If you can afford to pay a little more than the lowest premium available, it is wise to opt to pay a slightly higher premium in order to increase the level of coverage you have. It is certainly prudent to pay even $100 more monthly to boost coverage.

The second out of pocket cost after an accident is paying your deductible. Often, your deductible is $500 or $1,000. The rule when determining your deductible pertains to how much money you can pay out of pocket with a severe negative effect on your finances. If you have a lot of money in savings, then having a larger deductible is not a very big risk. However, if you are not a saver and do not often have an extra $1000 on hand, it is wise to opt for insurance coverage with a lower deductible at the expense of slightly higher premiums. You must max out your deductible before your insurance coverage kicks in. For instance, if your deductible is $500 and you have an accident that causes $3,800 worth of damage, then you can only expect your insurance company to pay $3,300. You are responsible for the rest.

Understand and weigh these costs when choosing an insurance policy.

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