Why should you review your auto insurance proactively?

by | Oct 21, 2020 | car accidents

Unfortunately, Kentucky residents can often run into obstacles long before they are even in an accident. These challenges typically arise out of insurance.

Insurance matters can be complex. Most people look only to save money on their insurance policies. However, they must avoid serious mistakes to make sure they not only save money, but also have financial safeguards in place in the event of an accident.

First, what coverage does the law require?

Under Kentucky law, all drivers must have minimum liability coverage. This generally covers:

  • $25,000 for bodily injuries and $25,000 for property damages; or
  • A single limit policy of $60,000.

All auto insurance policies must also include basic Personal-Injury-Protection (PIP). This may be all the law requires drivers to have, but individuals should carefully review their insurance policies. This can help to ensure they have the protection that is right for them – not just mandated by the Commonwealth.

Evaluate your policy for proper coverage before an accident

Many people might get the mandatory coverage to save money in the long run. But it is impossible to know what to expect in the event of an accident.

Therefore, individuals must calculate the risk they face in the event of an accident to make sure they have the right coverage for them. They can avoid costly mistakes by reviewing:

  • Liability coverage: Do Kentucky’s requirements work for the individual and their family, or should they consider another option?
  • Deductibles: Reassessing the deductible on one’s auto insurance policy can help them save money in case of an accident, while also maximizing their coverage.
  • PIP coverage: Insurance companies often include many types of PIP coverage. It is helpful to review them all to choose the best policy to cover lost wages and medical expenses in the event of an accident.
  • Uninsured v. underinsured motorist coverage: These are two different policies – and it is often important to get both. Underinsured motorist coverage can help when a negligent driver’s insurance is not enough to cover the damage they caused. Additionally, many people still drive without any insurance. Uninsured motorist coverage can also help in the event of a hit-and-run accident.

There are still ways to save money without sacrificing protection in the event of an accident. That is why individuals should review their auto insurance regularly to maximize their coverage.