The importance of auto insurance
The importance of auto insurance and the three types of minimum coverage required by law
If you drive a passenger vehicle, the law requires you to have auto insurance.
If you cause an accident, you may be held liable for any financial losses sustained by the other party. An insurance company will help you cover these expenses. These losses could go deep into your pocketbook in the event you have to cover not only property damage but medical expenses, lost wages, and noneconomic damages such as pain and suffering. In the absence of an adequate insurance policy, your assets could be seized as collateral for covering the other party’s expenses. This can include your home, any savings you may have, and your future earnings could be garnished in order to make up any difference between the value of your current assets and the amount you owe in damages.
Many different types of policies exist, depending on your situation and what kind of coverage you deem desirable. In exchange for paying a premium, an insurance company will agree to cover certain expenses as detailed in the policy you purchase. Having adequate coverage can prevent you from suffering deep and devastating financial losses should you be in an accident. The state of Delaware requires a minimum level of coverage in order to register your car.
If you have ever been pulled over, then you know that when you are stopped by law enforcement for any reason, he or she will ask to see your proof of insurance. If you do not have insurance, you will be fined a minimum of $1,500 for your first offense and $3,000 for each offense thereafter within three years of the first violation. Your license will also be suspended for six months.
Coverage required by law
There are three types of insurance that Delaware law requires all drivers to carry. These include:
- Bodily injury protection
- Property damage
- Personal injury protection
You are required to possess bodily injury protection coverage to the tune of $15,000/$30,000. This means that in the event you are found to be responsible for the injury or death of another, your insurance company will pay up to $15,000 for a single accident, and up to $30,000 to everyone involved in a single accident.
For property damage, you must have coverage of at least $10,000. This means that if you are responsible for damages to someone else’s property, your insurance company will pay up to $10,000 for property destruction as a result of any single accident.
Personal injury protection (PIP) is arguably the most important of the three. Regardless of whether or not you were responsible for the accident, your insurance will cover medical expenses and lost wages for both you and your passengers. Minimum coverage will provide up to $15,000 for one person in an accident and up to $30,000 to everyone involved in an accident.
PIP coverage also includes up to $5,000 for funeral expenses in the event of a fatal crash.
If you or a loved one has been injured in an accident and someone else is at fault for your injuries, you need the assistance of a reputable firm with a proven track record. Call Edelstein Martin & Nelson toll-free at 1-800-300-0909 or contact us online to schedule a no cost consultation today.