How Much Car Insurance Do I Really Need?

There are different types of insurance that every owner of a car in Washington State needs to think about. Some insurance coverage is mandatory. Some insurance depends on how much you can afford. Different insurance policies may have different features. As a general rule, you should buy as much liability insurance and UM/UIM insurance that you can afford. You should buy as much collision insurance as it would cost to replace your vehicle if it was totaled.

We know “as much as you can afford” is a pretty vague answer, so today we’re going to look at the different types of car insurance you can get, and discuss what the minimums are. We’ll also take a look at why it’s better to buy more insurance.

Liability car insurance coverage

Liability insurance is the coverage you need if you cause a car accident. Liability insurance pays the victims for any deaths or injuries you cause.

According to the Washington State Department of Licensing, every car owner must have the following minimum insurance:

• $25,000 for bodily injury or death of one person in one accident
• $50,000 for bodily injury or death of two or more people in one accident
• $10,000 for the destruction of property

If you cause the death of anyone, the value of their claim will almost certainly be worth much more than $25,000 or $50,000. If anyone you injure suffers an accident that requires surgery, just one night in a hospital can cost more than $50,000.

There’s no guarantee you’ll hit some who drives a “cheap” car. Many new cars cost at least $20,000. Some cars cost $30,000 or more.

It’s best to purchase much more than minimum if you can afford to -to cover the amount of damages you might owe if you cause a serious accident.

UM/UIM coverage is more important than you might think

Uninsured/Uninsured (UM/UIM) coverage pays you if someone else causes your injuries and they:

• Don’t have insurance
• Don’t have enough insurance
• Flee the scene in a hit-and-run

One sneaky thing that insurance companies do is tell you that you can waive your UM/UIM coverage, which will lower your monthly payment. This is 100% accurate, but it’s also a serious risk to you. Since the medical bills alone in any accident can be tens of thousands of dollars or more, and since most people only buy the minimum amount of car insurance, UM/UIM often picks up the slack where regular insurance drops off. So if you sustain, say, $100,000 worth of damages, but the insurance policy of the driver who hit you has a policy limit of $50,000, you’re on the hook for the other 50 grand. But if you have UM/UIM insurance, then you can use that to help pay your bills.

Collision/property damage car insurance coverage

This insurance policy covers the damage to your car if you cause the accident. You should buy enough to replace the car. The replacement cost is usually more than the value of your car since every car loses value the moment you drive it off the car dealership lot.

Other types of car insurance coverage you can buy in Washington

In 2019, out of every state in the US, Washington State is ranked fifth for having the highest percentage of uninsured drivers. Despite our state making it mandatory for every motorist to have liability insurance, still a great number of drivers remain uninsured. This is usually due to the cost of insurance, which can vary from state to state. MoneyGeek reports that “the average cost of car insurance in Washington is moderately-priced at $1,264 annually,” which is below the national average, but still can be quite unaffordable to many.

High costs of insurance can be due to urban population density, highway density, high vehicle theft rate, natural disasters, and even a high number of underinsured/uninsured motorists. With a higher number of uninsured motorists on the road, the price of insurance rises as there is a higher chance that you will end up in an accident with one such uninsured driver. It can be a bit of a Catch-22. The more insured drivers, the more likely the cost of insurance will decrease.

Car owners should also think about buying the following types of coverage:

• Comprehensive insurance. This policy pays for damage to your car if it’s stolen, destroyed in a fire, or damaged due to reasons other than a car accident.
• Gap insurance. This pays the amount of your loan on your vehicle – which may be more than the value of your car.
• Rental reimbursement. You’ll likely need to rent a car if you have a car accident until your car can be repaired or replaced. Your insurance policy can cover most, if not all, of the costs of a daily rental.
• Roadside assistance. This coverage pays for the cost to tow your vehicle if you get stranded or get into a car crash.
• Umbrella coverage. Your insurance carrier may offer umbrella coverage which is extra liability insurance in addition to the amount on your standard insurance policy.

What is an umbrella insurance policy?

While not common, an umbrella insurance policy protects you and your family when you are in an accident where the costs exceed the amount covered by your regular insurance coverage. If you cause an accident where several vehicles are involved, and multiple people are injured, an umbrella policy will cover your costs when the expenses exceed the limits of your liability insurance. An umbrella policy will also cover any legal costs. It does not only cover car accidents, but all sorts of areas such as “personal injury to others, damage to other people’s property, and a variety of claims such as defamation, landlord liability and false imprisonment” depending on the type of umbrella insurance policy you choose.

Insurance is important, and it is worth the monthly or annual payments you make. One day, you may find yourself in a minor or severe car accident, and you will be spared a great amount of stress and pain when your insurance covers much of the costs you would have had to pay on your own otherwise. On top of insurance, if you are in an accident, you should seek out a car accident attorney if someone else was responsible for the collision. While insurance will cover your costs, compensation will do that and more, ensuring that they pay for the pain and suffering you are likely to endure due to their negligence.

The real cost of an auto accident in Vancouver or Battle Ground, WA

It’s said often that we believe that an accident will never happen to us. Accidents happen to other people. Then you’re in one, and when you don’t have insurance, you may find yourself deeply in debt with a wrecked car, as well as dealing with severe injuries.

The National Safety Council’s Injury Facts (NSC), calculated the average economic cost by “injury severity or crash” as well as the average comprehensive cost by injury severity. From a purely financial and literal money-lost perspective, based on “the calculable costs of motor-vehicle crashes are wage and productivity losses, medical expenses, administrative expenses, motor-vehicle damage, and employers’ uninsured costs,” you can expect to pay anywhere from $4,700 to well over $1 million dollars depending on the severity of the accident, and whether there were any injuries or fatalities. After factoring in the loss of quality of life, you can expect to pay much more: anywhere from over $52,000 to over $11 million. Of course, these numbers are based on averages in the year 2020, and so individual costs may vary greatly.

You have to consider as well the amount you may have to pay should you be responsible for another person’s accident. Having insurance can help you to avoid paying (or help you to pay) someone else thousands or hundreds of thousands of dollars for wrecking their car and/or causing them injury.

Most of us will not even see a million dollars in our life, much less be able to pay that amount due to an accident. This is the reason why insurance, especially comprehensive insurance, is important.

At Philbrook Law, our Vancouver, WA car accident lawyers begin each case by determining who is liable. If multiple defendants are liable, then multiple insurance policies may cover your damages. We fight aggressively to get you full compensation for your medical bills, lost income, pain and suffering, property damage, and other damages. Call our offices in Vancouver, WA and Battle Ground, WA at 360-200-7137 or use our contact form to schedule an appointment.

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