If you are new to car insurance and signing up for your first policy, you may come across a term stating “standard car insurance.” What does standard insurance coverage mean? Standard insurance refers to the most basic coverage available.
Standard auto insurance is not always what the majority of the population purchases, but it does give a driver peace of mind and the legal right to drive. Standard insurance usually refers to the insurance coverage that is required by law in order to make a car legal.
Learn all about what is included with a standard auto insurance policy and then enter your zip to start comparing online car insurance rates!
The Importance of Liability Insurance
That means that first and foremost, a standard policy will include liability coverage. This coverage protects the consumer against the cost of damages and injury that might result from a collision on the road. This coverage does not cover your car’s damages, but only the car of the person you collide with. There are two aspects of liability coverage. First, there is bodily injury. This coverage handles personal injury that results due to your negligent or accidental actions. The second aspect is that of property damage liability. This covers insurance for the damage you inflict upon another person’s property, including their vehicle.
How much does this liability insurance pay? The industry recommended standard for liability insurance is usually about $100,000 for bodily injury caused to another person, $300,000 for total bodily injuries for everyone in the vehicle, and $100,000 for property damage. Why is the value so high? It’s not only to appease the pain of the injured driver.
The fact of the matter is that medical costs and car costs are drastically rising. In fact, the 100/300/100 standard is actually a minimum of cover protection. You should know that each state is different as regards its minimum standard. Some states may require as little as $15,000. In this case, you get a major break on your premiums. However, this could be a mixed blessing considering that the other motorist could sue you if you don’t have enough coverage to cover the total damage.
Other Policies Worth Noting
Collision and comprehensive damages are not included in a standard policy. These are extra policies you can buy to protect your own car from car collisions, vandalism and other threats. Why aren’t these coverage opitons considered standard? Because legally speaking, you are not obligated to take care of your car, or pay to improve its appearance. So long as it’s not harming anyone else on the road, you could legally drive the ugliest and shakiest car imaginable! You do, however, have an obligation to your neighboring motorists.
This explains why many motorists choose to eliminate their collision and comprehensive coverage altogether and just pay for liability. With no obligation to pay for your own car’s protection, one can save a lot of money on premiums. Be aware that if you owe money on your vehicle the loan holder will likely require those coverage options as part of your lending agreement.
There are a few other policies which may be covered in an insurance contract. We have medical payments insurance, which covers the immediate treatment of injuries that take place during an automobile collision. This policy covers mainly secondary motorists who are riding with you. It doesn’t matter whose fault the collision is—this policy allows for your motorists to go to the doctor and have their injuries treated.
The other policy is called PIP or Personal Injury Protection. This policy is similar to the one just discussed, but different in that it provides more coverage. This also covers miscellaneous expenses for lost wages, pain and suffering, funeral expenses and other avenues. Not every state will require these special policies to be included in a standard contract, but some do.
What About the Uninsured?
Last but not least, you have to worry about uninsured or underinsured motorist protection. This is a policy that protects you from negligent drivers who do not carry insurance. Usually, when you are hit by someone that has no insurance you suffer the consequences. They might be arrested and slapped on the wrist, but you will be the one that has to pay off these damages.
You can try to sue an uninsured person, but since they can’t afford car insurance, they usually have no assets or money. The same problem occurs when a motorist has insurance, but doesn’t have enough insurance to pay for your totaled vehicle. The only way to protect yourself in every sticky situation is to have insurance that specifically covers uninsured and underinsured drivers. Uninsured or underinsured motorist coverage is a protection for you against individuals driving illegally, and against the state, which allows for such ridiculously low coverage amounts. This policy is not always required in each and every state, but it is still worth considering.
Standard Auto Insurance Quotes
Don’t always accept the “standard” policy offered by a new auto insurance provider. Make sure that you read the contract and understand what coverage options are offered and what situations are not covered. A car insurance rate quote tool can help you search different insurance companies and compare policies. Why not compare rates on your car insurance now?
