Many of us might be confused on how much amount of the car insurance coverage should be bought? This write up will help you with the choosing the right amount of car insurance and what all should be kept in mind so that you end up buying the proper amount. Some of the factors which are needed to keep in mind are:
The Liability Coverage
The coverage kicks in when you are at fault for the accident due to which the money goes to the other party which is being involved in the accident. More is the liability coverage limit more, larger damage can be covered, for the opposite party. The policy won’t cover any of your damages.
Bodily Injury Liability (BIL)
This policy will cover the expenses of the person who is at fault of the accident. If you are at fault for the accident the BIL policy will cover your medical expenses. Generally the policy comes with numbers of 20/50 or 100/300.
The 20/50 policy will have a maximum coverage of $20000 for a single person injury in the accident and all the other people in other car; the maximum limit is $50000. In $50000, all the people who are injured in the other car involved, will be treated.
The Property Damage Liability
The property damage liability policy covers the property damage done to the other car. If you are at fault for the accident, the policy will cover for car damage repairs of the other car. Generally the policy is given by the numbers 20/50/10, where the 20/50 are the BIL policy and other $10000 is for the property damage policy.
Personal Injury Protection
This policy will cover your and your passengers’ medical expenses if involved in the accident. So if you are involved in an accident due to other car, you will receive the benefits of the policy straight away. If you have lost working hours due to the accident, the policy will cover your lost wages.
Collision And Comprehensive Coverage
This policy will give you benefits of covering the car damages expenses after an accident. In addition to that, if your car is stolen or damaged due to any other reason other than accidents, the policy will cover the cost of your car.
These are the basic policies which are found in any car insurance. So what do we search for in these policies? Which policy needs to have the highest limit which needs to have the lower? Let’s find out!
What Is The Right Amount?
If you have already been well updated with the health insurance and disability insurance from your employer then it’s highly recommended that you don’t spend much money on personal injury protection policy. If you get involved in an accident, your other insurances will as it is cover your expenses. Hence taking the sensible road, do not waste much money with the PIP policy.
It is highly advised to have a high coverage limit for the uninsured or in the under-insured drivers. If you get involved with an uninsured driver you might have a lot of benefits through the policy. Further if being hit by one of the under-insured drivers you will cover the property damage expenses as well which your health insurance won’t.
Having the collision and comprehensive damages is a good option to keep if your car needs to be repaired or needs to be replaced. The only drawback for the policy is that the insurance company will pay only with the current value of the car and not the amount you paid to buy the insurance. If you have paid $50000 for the insurance and your car has a value of $30000 then the company will pay only $30000 for the damages.
Buying The Policies
Hence with money terms and conditions to buying any car insurance, make sure you buy the policies suitable to you. On the websites, which help in choosing the right car insurance with the right amount, you will find the car insurance Singapore options with just some clicks to buy the best car insurance suitable for you. Make sure to go through each and every option available to you and pick the one that meets all your requirements.