What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

Car Insurance for Single Moms

One of the most debated and much-discussed topics in the United States is the Insurance companies, charging significantly higher rates of the car insurance premium for cars owned by Single Parents as well as for the divorced, separated and widows and widowers. Though this is absolutely logical from the standpoint of the insurance companies, it becomes cost-extensive for the policyholders. Paragraphs underneath shall discuss on various aspects, related to car insurance policies for this target group.

Auto insurance coverage types for a single parents

  • Liability Coverage: In the majority of the states in the US, it is mandatory for the car owners to buy the Liability coverage that will pay the compensation payable to 3rd parties for causing them some damages and you are at fault. In addition, this coverage will cover the compensation payable for the damages to the 3rd party cars as well as the payment for medical expenses, should any physical injuries occur due to the accident. The minimum value for this coverage varies from state to state and you should buy the coverage of adequate value to comply with the law and secure your financial interest.
  • Personal Injury Protection: The protection for Personal injuries covers the expenses borne on medical reasons by the party at-fault and the person, occupying the affected car at the time of the accident. The coverage will take care of the expenses for hospitalization, recovery expenses, and even the funeral expenses, should either of the parties die due to the vehicle accident. For single mothers, this is a compulsory coverage for the Single Moms.
  • Collision Coverage: this plan will cover the expenses for repairing the damages resulting due to the collision. However, if you have opted for the At-fault liability scheme, the benefit will protect the 3rd party, but, will not cover you. Hence, it will be wise to opt for the Collision Coverage that will pay for your repairing expenses and will enable you to escape the threats of shouldering these expenses, out of pocket. This way, you can minimize the impact of the accident on your children.
  • Rental Car Reimbursement: This scheme will fetch you reimbursement of the expenses that you will incur for hiring a car on rent, for the span your own vehicle lies in the service station for the repairing and restoration purposes. But, you will be getting the money from the Insurer, only after your insurance claim is getting settled.
  • Free Towing: AS per this plan, you can get your car towed to the nearest service station, without having to pay for it up front. However, in some instances, the insurer might require you incurring this expenses upfront and you will get a reimbursement for this expense, once your claim is settled.
  • Roadside Service: You are likely to require availing the emergency roadside assistance service at any time. The purpose of this coverage is to cover the expenses, borne on such grounds. Though this is an optional coverage, you should opt for this plan, paying some little amount of additional money, as it will enable you to escape paying the higher cost for availing these services.

Buying these compulsory and optional coverages will enable you to reduce your expenses as consequences of a car accident and thus, leaving the minimum impact of the car accident on your children.

Discounts for single parents

Though it might appear to be a bit discriminatory act, Insurers, in general, will not offer any discounts to the Single Parents or to the single drivers and the car owners who had been divorced, separated or they are a widow or widower. However, it is you who have to incur a higher rate of the insurance premium, and hence, before buying any policy, you must discuss for some concessions with the insurer. Fortunately, insurers are offering concessions to such car owners, under either of the following grounds:

  • Mileage Discount: in some instances, the insurance companies are offering concessions to the drivers, driving to a lesser extent than usual. You can arrange a carpool for your children to commute to-and-fro the school and college and you can walk to the nearest places, rather than driving to such spots all the time. This simple trick will reduce your insurance premium rate significantly.
  • Group Concession: Is that you belong to a special interest group or a specific union? If so, you will be eligible to get some discount, at the rate of the insurance premium, under the Group Discount scheme. Service Members, Teachers, Veterans of Military and other community members are offered with this benefit.
  • Discount for Safe Driving: In case you are not having any records of the car accident in the last 3 years, you can claim some discount under this scheme. Alternatively, you can undergo the courses for Defensive driving that will also entitle you to claim discounts under the same scheme.
  • Family Policy Concession: in case your child has attained the age to be legally permitted to drive and you require coverage, you can incur some significant savings, simply by adding them to the existing vehicle insurance policy you hold. Young Drivers can cut down the rates on the insurance premium, no matter on a single policy or a bundled policy, by retaining an impressive GPA or undergoing Courses for driver education.

In addition, your insurer can design some special discounts, based on your personal profile and other factors.

Car Insurance After Divorce Or Separated

If you recently had a breakup with your spouse or you two recently decided to get separated, remember, it is going to affect your car insurance rates. It is for the reason that as a newly single, the insurance needs will change significantly. Should you and your spouse would have stayed together, you two could have opted for combining the single insurance policies, and thereby saving some amount of money on the insurance premium. However, such benefits freeze out as you get divorced or separated from your spouse.

Such policyholders will not be eligible for the concession for Multi-Car, Insurance History & Loyalty as well as Multi-Line schemes.

Car Insurance For Widows/Widowers

Your standing as a widow/widower will take you in the category of the Single drivers, whom the insurers take as the most risk-prone cases. Hence, you should be ready to pay higher rates on insurance premium for insuring your vehicle. However, you can still claim some concession by undergoing safe driving courses, displaying a safe driving history as well as if you have impressive credit scores, consistently for years. You will be eligible for the concession on Mileage as well as Group Discount schemes.

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