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 look at this document, you will see that the major categories in your insurance policy include PIP, or Personal Injury Protection, your liability limits, and your comprehensive coverage. Each of these add to the total amount you pay, and if you are looking to save money, you may question which ones are the most important.
The biggest contributor to your price is probably going to be your liability limits. Kentucky requires minimum coverages of $25,000/$50,000/$10,000. Although it is against the law to be insured for less than this, it is a good idea to bump your coverage to something higher like $100,000/$30,000/$100,000. This increases your premium, but it is the last place where you should cut back.
PIP is, to many people unnecessary to the amount required by Kentucky, but it is required nonetheless. You must have a minimum of $10,000 which pays for medical bills immediately if you get in an accident with a noninsured. Getting more PIP coverage than this is probably a waste of money.
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 do own your car, you can save money by dropping this coverage, but use discretion. If you drive an expensive car and you total it in an accident, this decision could come back to haunt you because you would have to replace it out of pocket. The only reason you would consider dropping it is if you have a car that isn't worth much.
As you look at this document, you will see that the major categories in your insurance policy include PIP, or Personal Injury Protection, your liability limits, and your comprehensive coverage. Each of these add to the total amount you pay, and if you are looking to save money, you may question which ones are the most important.
The biggest contributor to your price is probably going to be your liability limits. Kentucky requires minimum coverages of $25,000/$50,000/$10,000. Although it is against the law to be insured for less than this, it is a good idea to bump your coverage to something higher like $100,000/$30,000/$100,000. This increases your premium, but it is the last place where you should cut back.
PIP is, to many people unnecessary to the amount required by Kentucky, but it is required nonetheless. You must have a minimum of $10,000 which pays for medical bills immediately if you get in an accident with a noninsured. Getting more PIP coverage than this is probably a waste of money.
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 do own your car, you can save money by dropping this coverage, but use discretion. If you drive an expensive car and you total it in an accident, this decision could come back to haunt you because you would have to replace it out of pocket. The only reason you would consider dropping it is if you have a car that isn't worth much.
About the Author:
Steve Turner is is familiar with crucial information on purchasing auto insurance. Heritage Insruance, Inc. Steve Turner is a valid source in comparing an insurance policy. Insurance Statement Review
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