Your liability coverage is the most important part of your car insurance policy. For that reason, it’s important that you know what it covers and what it doesn’t cover. Keep reading to learn more.
Who Does Liability Insurance Protect?
Your liability insurance is supposed to protect other drivers. Yes, it can protect your cash savings, house, and other assets from a lawsuit if you cause an accident. Still, the real reason that the law says you have to buy insurance is so that the driver who wasn’t at fault can get reimbursed without worrying about whether the other driver has any money.
You might think that every other driver’s insurance policy covers you, but not so fast. About 6% of drivers in New York are uninsured. That’s nearly half of the national average, but that could still leave you in trouble if you get hit by an uninsured driver.
What Does Uninsured and Underinsured Motorist Coverage Do?
Uninsured and underinsured motorist coverage gives you the coverage that other drivers should have. Your bodily injury and property damage limits apply to other drivers, but when they don’t have those coverages, your own limits don’t kick in. Instead, you need to have added uninsured and underinsured motorist coverage.
Uninsured motorist coverage protects you from drivers who don’t have any insurance. Underinsured motorist coverage protects you from drivers who don’t have enough coverage, such as legal minimum policies, to pay for a serious accident. You may also see an uninsured or underinsured motorist property damage coverage that splits out the property damage limit.
Why Do Drivers Go Without Insurance?
Most drivers go without insurance because they can’t afford it. Yes, some people unwittingly allow their policy to lapse or forget to make a payment, but many more deliberately cancel their policies or allow them to be canceled for non-payment.
This increases during times of economic uncertainty, such as COVID-19. So while you may want to trim your own insurance coverage to reduce expenses, it’s important to understand that your uninsured and underinsured motorist coverage is more important than normal and is generally not something that you want to trim.
Do You Need to Lower Your Insurance Costs?
During a time of economic uncertainty, you may need to lower your insurance costs. First, understand that some insurance companies are automatically giving rebates during COVID-19 because fewer people on the road means less risk for everyone and lower costs. You may also be able to arrange a payment plan or deferred billing. And, as always, you can shop for quotes at any time to see if another insurance company can give you a lower rate.
Talk to Your Insurance Agent
If you need help figuring out what coverage you need and where to find the best rates, talk to an independent insurance agent. Independent insurance agents work for you, not the insurance company, so they always put your best interests first. Skeele Insurance Agency serves DeRuyter, Chittenango, Cazenovia, Manlius, Moravia, and Waterville. Contact us today to learn more.