When examining a potential insurance policy, you need to check on several things:
- Overall coverage, both for property damage and for medical.
- Gap coverage if your vehicle is financed.
- Uninsured/underinsured coverage.
- Deductibles on various events.
- Whether there is any umbrella coverage.
One thing to ask your agent is what your rate would be if you increased your coverage amounts. The most expensive portion of the insurance is the first part, and adding coverage amounts may be more affordable than you think. It is particularly important to make sure the medical pay has higher limits if you have health insurance coverage that is not particularly good or has a very high deductible.
In addition, it is CRUCIAL to make sure you know what drivers are allowed on your policy for the vehicle. If it is someone who is not covered, your insurance will refuse to accept the claim, and you, as the owner of the vehicle, can be liable for damages for negligent entrustment of the vehicle to someone not covered under the insurance policy. It is important to ask that question—DO NOT ASSUME EVEN FAMILY MEMBERS ARE COVERED. Insurance coverages vary, and you need to be sure before you let someone drive your vehicle.
DISCLAIMER: All legal principles quoted are valid as of the date of writing in the State of California. However, you should NEVER base your actions on a legal article, blog, or internet story, as facts in real life are complicated. You should have your case evaluated by an attorney experienced in the area of law needed for your case. In addition, there are often exceptions and potential changes to results that occur due to facts that you may think are trivial or unimportant. This article should not be taken in any way as legal advice on your specific legal matter.
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