Look out for Uninsured and Underinsured Drivers
A majority of states have laws on the books that require you to carry a policy that covers you for uninsured or underinsured drivers. The difference between the two auto insurance requirements is simple:
- Uninsured drivers are people driving around without any insurance coverage at all. If they crash into you, you'll have to go after them in court to recoup any medical or property damage expenses.
- Underinsured drivers are just as big a risk to you because the limit of their liability insurance may not cover the damages they owe you.
In both cases, having uninsured/underinsured insurance coverage is a way to protect yourself against having to absorb the cost of being hit by a bad driver who doesn't have enough in the proverbial bank to pay you for your troubles. Whether or not it's one of the state auto insurance requirements where you're moving, it's a smart idea to carry this in the event you happen to meet that one irresponsible person on the road with you.
State Auto Insurance Requirements: Hike Up Your Liability
It'll certainly be cheaper for you to get the bare minimum coverage that state law requires with respect to liability insurance, but make no mistake—if you cause an accident and your insurance isn't enough to cover the damages, you could get sued in court. When you consider the ramifications this could have on your financial situation, it might give you cause to hike up your liability coverage.
Think About Medical Expenses
Admittedly, this is a really morbid subject. But it has to be discussed. Whether or not you're at fault in an accident, you could end up with some serious hospital bills. Of course, these will be paid under your private medical insurance if you don't have adequate auto insurance coverage, but if your passenger is seriously injured or even killed, you could find yourself being forced by a court of law to pay up. Give this one some long, hard thought.
Who knew that moving could entail so much? Just bear in mind that dealing with auto insurance changes is just another part of making a move. That knowledge won't exactly make it easier on you, but it might help you to know that everyone else who moves has to go through the same thing.