Claims resulting from any accident can have a major influence on premiums. It is essential to have the right amount of insurance to cover car repairs and medical treatments after an accident. Factors such as your state of residence and income can determine the amount of insurance coverage you need. People with low incomes can opt for minimum levels of liability insurance coverage for cars, but it is best to buy more coverage as your income increases.
If you are at fault for an accident, the law will require you to pay the bill for the bodily injuries and property damage suffered during the event. Your insurer will only cover damages up to the limits of your policy, allowing you to pay the other bills yourself. As you update your insurance policy, your insurer increases your coverage limit. It is recommended to purchase insurance coverage higher than the minimum level of coverage to provide adequate protection against damage.
Uninsured motorist coverage covers medical treatment costs and auto repair bills when an uninsured driver crashes into their car. MoneyGeek states that you need comprehensive and collision coverage if your car is less than 10 years old or you won't be able to cover the cost of repairs or replacing the car out of your pocket. It is also recommended to purchase this coverage if your area suffers from natural phenomena such as floods, tornados, hail and animal crashes, which can cause significant damage to your vehicle.