Insurance coverage is a vital aspect of owning a car, but sadly, some people underestimate its importance.
Most states require all vehicles to have automobile insurance, but with multiple options to choose from, how do you decide which is the best plan for your older car?
The Law
Most states require all vehicles to have some degree of motor vehicle insurance. In the state of Utah, all automobiles must have liability insurance during the registration period. Proof of insurance must be available upon request from a police officer. You can show proof of insurance via your phone or a paper copy. If you fail to keep insurance in your vehicle, you can be fined up to $400 on your first offense and $1000 on your second offense.
Types of Insurance
There are many different types of automobile insurance. It is important to understand each of your options in order to make the best decision for your older vehicle.
Liability
Liability insurance covers any car accident where you are found at fault. Liability insurance will help cover the cost of any property damaged by an accident. If any injuries were sustained, this coverage will pay for any medical bills that were a result of the accident. Most states require liability insurance to legally drive on the road.
Collision Coverage
Collision coverage helps you if you are involved in an accident with another vehicle or if you hit an object. This type of coverage can help you pay to repair or replace your car up to its actual cash value.
Comprehensive Coverage
Comprehensive coverage is for incidents that are not related to an accident with another car. This includes fire, theft, or damage caused by a storm.
Personal Injury Protection (PIP)
PIP, or no-fault insurance, helps pay for expenses like medical bills, wage losses, and household services after a car accident no matter who is at fault.
Classic Vs. Standard Insurance
If you have a car that is 20 years or older and you have restored it to greater than its average value, you may apply for classic car insurance.
What is the difference between standard and classic car insurance?
With standard comprehensive car insurance, your coverage is limited to the cash value of the car. For example, if your car is totaled, your insurance company will send an appraiser to determine the cash amount your car is worth.
With classic car insurance, your coverage limits are based on an agreed value between the owner and the insurance company. The value may be based on the car’s condition, special-order parts, improvements, and the cost to replace the car.
Flickinger Sutterfield & Boulton Can Help
Proper insurance coverage is essential if you have been in an accident, but hiring a lawyer can help you handle the aftermath as well. The injury attorneys at Flickinger Sutterfield & Boulton are well-versed in insurance policies and working with agents so that we can help you maximize your compensation.
We have offices throughout Utah County and West Jordan, Utah. Please contact us to schedule your free case evaluation today.