Washington Car Insurance Guide
For those who own a car or truck, purchasing auto insurance is not only a good idea, but it also is the law in all 50 states, including Washington.
Purchasing an auto insurance policy, however, is not something that should be taken lightly - there are several components of auto insurance that should be considered. From what types of costs are covered by the best auto insurance policy to knowing how much coverage is enough, it is best to do some research before buying a policy in order to ensure that the policy you select is the best for you and your lifestyle.
What Types of Costs are Covered by Auto Insurance
When it comes to auto insurance, there are five primary types of coverage that can be purchased:
Bodily Injury Coverage:
This type of coverage provides protection against any legal claims that are made by other injured drivers if the policyholder is found to be at fault for an accident.
Liability Coverage:
This type of coverage provides protection if the policyholder damages another person's property in a vehicular accident.
Collision Coverage:
This type of coverage covers costs stemming from damage to the policyholder's vehicle that is caused by another vehicle or object.
Comprehensive Coverage:
This type of coverage covers costs stemming from damage to the policyholder's vehicle that is caused by non-vehicular events, such as fire, theft or vandalism.
Uninsured or Underinsured Motorist Coverage:
This type of coverage protects the policyholder if he or she is in an accident that is caused by another driver who has little or no insurance.
How Much Auto Insurance Coverage is Enough
Almost every state requires drivers to carry a minimum level of auto insurance coverage. In Washington, the state minimum coverage is 25/50/20, meaning that drivers must carry coverage of at least $25,000 for bodily injury for one person, with a maximum of $50,000 for all injured persons, and $10,000 for property damage.
In an effort to save money, many drivers might consider purchasing only the state minimum auto insurance coverage. However, these drivers often discover that carrying the state minimum actually can end up costing them more in the long run.
The U.S. Department of Health and Human Services found that the average cost associated with an average hospital stay of 4.6 days was $23,958 in 2006.
If a driver carried Washington's minimum auto insurance coverage of 25/50/20, the auto insurance policy would just cover the average hospital stay costs - provided the injured person did not require any care after his or her hospital discharge.
If the injured person's medical costs exceeded $25,000, the policyholder would be on the hook for the remainder of the bill and the injured person would most likely come after the policyholder's assets to collect on those costs.
For this reason, it is a good idea to consider the value of your assets (i.e. how much you have to lose) when determining how much auto insurance coverage you should purchase.