Have you ever heard of gap insurance as it relates to your auto policy? If you have that means you have probably been in an accident where the total price the insurance company is willing to pay you for damages to your vehicle is not enough to cover what you owe on your loan. In such cases gap insurance will cover the amount that you would otherwise be upside down on in the event of an accident where you car was totaled. If you are questioning if you have the proper amount of Auto Insurance in Honey Brook, then you should research other types of policies as well.
There is a minimum policy requirement that is required by law in most states if you want to legally drive. Driving is considered a privilege and for such a privilege you must pay for certain things like insurance, taxes and registration. If you don’t have these basic requirements the state can not only revoke your license but they can impound your vehicle until you show proof.
In all actuality the state requirements for Auto Insurance in Honey Brook are not very much depending on your own portfolio of assets. Liability is the biggest concern in which you have a policy that would cover medical bills, property bills, and other types of compensation that was a direct result from an accident in which you were or were not at fault for. A common policy would require at least 20/50 or $20,000 for each person’s medical bills up to a total of $50,000 for all the medical costs associated with the accident.
If you have an accident which results in more than $50,000 of medical bills, which is relatively easy to do considering the state of health insurance in this country, you are responsible for the difference. If your portfolio of assets when you add them all up, including home, car, material possessions, are considerable, you could be wiped clean in order to pay for the excess that was not covered by your Auto Insurance in Honey Brook.
This is why Auto Insurance in Honey Brook can help you determine exactly how much you should be covered for. It takes more than analyzing your car driving habits as you want to protect more in the event you are held responsible for an accident in which medical bills and property damage escalates.
