Key Takeaways
- Insurance laws can vary from state to state and in Idaho we have a very low bar for insurance requirements.
- It can be beneficial to you to get more coverage in the event of an accident simply because of how low the coverage is in Idaho.
- There are a variety of insurance types, liability insurance protects you in the event you are held liable for an accident.
- Comprehensive and Collision insurance protects your vehicle from accidents, and other factors such as animals, theft, or vandalism.
- Personal Injury Insurance protects you in the event a vehicular accident lands you in the hospital or in need of physical therapy.
- Uninsured motorist insurance protects you in the event you are in an accident and the offender does not have adequate coverage to help cover the accident.
Insurance laws can vary in each state
One of the big determining factors in how much insurance coverage you need is your state laws. Each state has certain rules and regulations that determine exactly the minimum coverage you need as a driver in their respective state. In Idaho the laws require a licensed driver to have a minimum bodily injury policy of $25,000 per person, and $50,000 per accident. Beyond that a driver is required to have a policy that has $15,000 in coverage for property damage liability.
While this seems like fair enough coverage, it really might not be enough depending on your needs and the quality of vehicle that you purchase. The state minimum does not include insurance for vehicle repairs, and if the minimum does not cover the total damage incurred in an accident, you could be held liable for the rest of the amount.
Below we break down the different types of insurance coverage for vehicles
Liability Insurance
Unfortunately vehicular accidents do happen and we see them all too often. These accidents are dangerous in and of itself, but the monetary fall out can oftentimes be just as damaging. Liability insurance helps protect you in the event when you cause an accident. If you are held liable for an accident, this insurance can cover the cost of repairs for the other vehicle, and helps save your bank account from bearing the full brunt of the repair costs and or medical bills required. The focus here is bodily injury liability and property damage liability. Which covers damages done to private property and to persons possibly injured in the accident.
This insurance is probably the most important to set at a premium, simply because you do not want an accident hurting you more than it already has. We recommend going with a higher liability insurance, because if you end up totaling a vehicle that is worth north of $60,000 and all you have is the required state minimum of $15,000, you will be held responsible for paying the $45,000 that remains. $100,000 to $250,000 worth of coverage is a policy where you can feel safe driving around.
Collision and Comprehensive Insurance
Collision insurance helps to cover damages to your vehicle in the event of an accident. This amount is easier to set as you are the one purchasing the vehicle. If you want to be able to replace the vehicle in the event of an accident, it may be important to purchase a coverage of more than what your vehicle is worth. Especially since this is your first vehicle, it might be worth it to get a full collision coverage policy. Comprehensive insurance protects your vehicle against non-accident related incidents such as fire, theft, vandalism and more. These two insurances typically come bundled together and you generally have control over your deductible here, and you can choose if you want a low deductible but a higher insurance cost, or vice versa.
Personal Injury Protection
This type of insurance is typically very self explanatory. When in an accident it is possible to become injured and incur some serious hospital bills. While we hope you never need this part of your insurance policy, it can be very beneficial to prepare against the event of an accident.
Uninsured or Underinsured Motorist Insurance
This insurance policy helps to protect you against the event that in an accident the other driver does not have a policy or coverage that is sufficient to cover your damages. This insurance can be extremely beneficial near college towns, and is generally the same amount as your liability insurance.