Each time the statement for your auto insurance arrives, you may be alarmed because of the price. Most insurance companies will give you a printout which breaks down the different expenses of your particular plan. As you read this article, you will understand a little better what you are paying for in your Kentucky automobile insurance and what is really necessary.
As you review this statement from your insurance provider, you will see that there are a number of different categories or coverages in your policy. Each of these will usually have a price beside them, specific to what you are paying for that coverage. These categories include Comprehensive coverage, your liability limits, and PIP (personal injury protection).
If you live in Kentucky, you must have liability limits of $25,000/$50,000/$10,000. This is the law and you cannot get less or forego this expense. Most people choose to get more coverage. Although it does cost money to get higher limits of protection, this isn't an area where you would want to get stingy. If you get in an accident, you don't want to be held liable for any expenses.
Many insurance critics argue that PIP is worthless. Although it does provide immediate compensation for things like medical bills if the other driver is uninsured or underinsured, many argue that it isn't necessary. However, it is currently required by the state of Kentucky, and by a number of other states. The state minimum is $10,000 which is higher than most other states with PIP requirements.
If you are in desperate need to lower your premiums, comprehensive may be the best area. Although this is a helpful coverage that pays for the damages to your own car, it is not required by law. Although it isn't illegal to drop this coverage, you may be required to keep it by your lien holder if you have borrowed to buy your car.
If you own your vehicle, this may or may not be a good option. If the replacement cost of your car is $20,000 then it probably isn't a good risk to save $200 a year at the risk of having to replace it at $20,000. However, if your car is worth $2,000 it may be worth the risk.
As you review this statement from your insurance provider, you will see that there are a number of different categories or coverages in your policy. Each of these will usually have a price beside them, specific to what you are paying for that coverage. These categories include Comprehensive coverage, your liability limits, and PIP (personal injury protection).
If you live in Kentucky, you must have liability limits of $25,000/$50,000/$10,000. This is the law and you cannot get less or forego this expense. Most people choose to get more coverage. Although it does cost money to get higher limits of protection, this isn't an area where you would want to get stingy. If you get in an accident, you don't want to be held liable for any expenses.
Many insurance critics argue that PIP is worthless. Although it does provide immediate compensation for things like medical bills if the other driver is uninsured or underinsured, many argue that it isn't necessary. However, it is currently required by the state of Kentucky, and by a number of other states. The state minimum is $10,000 which is higher than most other states with PIP requirements.
If you are in desperate need to lower your premiums, comprehensive may be the best area. Although this is a helpful coverage that pays for the damages to your own car, it is not required by law. Although it isn't illegal to drop this coverage, you may be required to keep it by your lien holder if you have borrowed to buy your car.
If you own your vehicle, this may or may not be a good option. If the replacement cost of your car is $20,000 then it probably isn't a good risk to save $200 a year at the risk of having to replace it at $20,000. However, if your car is worth $2,000 it may be worth the risk.
About the Author:
Steve Turner is is familiar with valuable information on buying auto insurance. Heritage Insruance, Inc. Steve Turner is a valid source in assessing an insurance policy. Insurance Statement Review
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