Antique Car Insurance - Jack Holichs

Like it or not, compulsory insurance laws mean you must carry liability insurance at the very least. This affords protection to one or more people in the other car should you have an accident. It will pay for their medical expenses and property damage up to the limit of the coverage you carry. But what about the damage to your car? Without the car insurance coverage that pays for your vehicle, every dime will have to come out of your pocket. If you have a relatively new car, you really can’t afford to gamble based on today’s prices for repairs. You need car insurance too. If you’re driving an older car with limited value it may not be worth repairing. In this case, liability insurance alone may suffice.

The car insurance you will need in addition to liability is called comprehensive and collision. This is pricey for new cars or if your recent driving record shows accidents. For truly expensive newer vehicles such as a Cadillac, Ferrari, Mercedes Benz or Porsche, this property insurance coverage will really dip into your wallet. There is also coverage available to compensate you if you are hit by an uninsured or under-insured driver. In large metropolitan areas like New York, Chicago or Los Angeles this latter coverage is often necessary as a safeguard since there are a sizeable number of uninsured motorists on crowded inner-city roads.

Keep in mind that the car insurance that protects your vehicle is never compulsory. It is your option to take the risk if you wish to. The single exception is when the company or bank financing your car loan makes it mandatory for you to carry car insurance in addition to liability insurance in order to qualify for the financing.

Insurance companies break down their available car insurance coverage this way: Collision covers any damage to your vehicle if you’re in an accident; Comprehensive covers you for theft, fire and other damage not incurring in an accident; This includes any break-ins, theft or vandalism and damage due to natural disasters like floods or earthquakes; Medical Payments cover expenses for injuries you or your passengers might suffer in an accident, usually in amounts between $5,000 and $10,000. Uninsured Motorist and Under-insured Motorist coverage protects you in the event you are hurt in an accident by a car driven by someone lacking any or enough insurance. Finally, some policies even include coverage for additional expenses such as a tow truck, rental vehicle, etc.

Car insurance pricing is based upon a number of factors that company Actuaries (statisticians) deem reasonable considering all the factors and risks they consider. These include age, sex, marital status, driving record, speeding tickets, the type of car and the way you use it. All these factors are taken into account in setting premium prices to ensure that the company recovers actual losses.

On the bottom line, you should carefully consider what car insurance coverage that you really need in addition to compulsory liability insurance. Remember that repairs and especially body work on a newer, expensive vehicle can really cost you if you’re uninsured.