10 Problems To Expect if You Don't Have Enough Car Insurance
The Californer/10285018

NEWPORT BEACH, Calif. - Californer -- Having insufficient car insurance can lead to significant financial, legal, and personal problems. Wages can be garnished, and you may be left to pay for repairs to your own car and injuries to your passengers. Here are 10 of the most common problems you may encounter if you don't have enough car insurance.

1. Out-of-Pocket Cost of Having No Car Insurance

Without enough car insurance, you may have to pay out-of-pocket for damages or injuries resulting from an accident. Let's break down the types of losses you may incur below.

Vehicle Repairs to the Other Car With Low Liability Limits

You may have the minimum liability limit in your state and find yourself owing money for repairs to the other driver's car, if you are held responsible for the accident. Vehicles are expensive, especially new ones, with all the new technology, like sensors and cameras.

Remedy: Increase liability limits and even consider buying an umbrella policy if you have assets to protect. An umbrella policy simply increases your liability limits, for car insurance and even homeowners insurance, in case someone is hurt on your property.

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Vehicle Repairs or Replacement for Your Car

Liability coverage will never pay for fixes to your car, and it won't pay if you total it. It makes no sense to buy collision coverage for a car worth less than $4,000 but anything over that value would best be protected with collision insurance.

Remedy: Buy collision coverage and consider comprehensive too, which is the only type of coverage that will help you replace a stolen vehicle or one that is damaged due to non-collision related causes.

Medical Bills Without Enough Car Insurance

Liability covers the passengers of the other vehicle as well as the other driver but not your own passengers. Hospital bills can be astronomical and the lowest limits may not be enough to cover everyone who's been injured. Also, your passengers will not be covered by your liability insurance, if you are at fault in the accident.

Remedy: Increase liability limits and buy medical payments coverage so that your passengers are covered for injuries.

Other Property Damage

Other cars aren't the only type of accident you may have. You may have hit a power line or some other public structure that you'll be responsible for in terms of necessary repairs. Liability coverage would cover the cost, unless the damage is so extensive that your limits are too low. Also subject to liability claims are buildings or landscaping that you may damage.

For the other 9, visit https://smartfinancial.com/dont-have-enough-car-insurance