Most people focus on the car. What color is it. Is it 2 door or 4 door, and how fast does it accelerate in traffic. Does it have power windows, locks, a great stereo and air conditioner.

Then, in a claim situation, those features suddenly become the least of your worries. All you care about is what KIND OF COVERAGE YOU HAVE. Or don't have.

Regardless what type vehicle you own, you need to know and understand your auto policy. Insurance Tempe

I had one client whose son rolled their vehicle with another teen passenger inside. Fortunately we had ensured they have excellent coverage. Another client came to me after buying an older, used vehicle. Naturally he wanted liability only because the vehicle was older and he assumed it was not worth insuring.

We evaluated his situation and the cost of adding full coverage. He accepted my recommendation. A few months later when the vehicle was totalled in an accident he was grateful to have full coverage. In his own words, he said "I would not have been able to afford to buy another vehicle". Having full coverage on his older vehicle saved him.

SO WHAT KIND OF COVERAGE DO YOU NEED?

Before we go into what kind of coverage, let's discuss a couple other issues. Are you working and making money? Do you own a home? Are you saving for retirement? Do you own other property?

The more assets you own, the better coverage you probably need. However, with that in mind, you don't need to own a mansion to need good insurance coverage. If you make money, that income is potentially subject to garnishment in a lawsuit. Can you afford to give up 25% of your income if you are sued and you lose? Probably not.

The average driver likely carries bodily injury coverage of $15,000 - $50,000 per person. I recommend much higher. Surprisingly, the premium difference is not that great to increase up to $100,000 or $250,000.

Bodily Injury protects people in the "other" vehicle for injuries if you are at-fault. When you see attorney's advertising for auto accidents, this is the coverage they are referring to usually.

Don't be caught in an at-fault accident claim with too little Bodily Injury coverage. Ask your agent to quote increasing this upwards.

Finally, increase your property damage coverage. This coverage will fix or replace the other vehicle if you hit it and are at-fault. Again, the typical coverage we see from new clients is usually between $10,000 - $50,000. This may be fine, unless you hit one of those expensive SUV's or a luxury vehicle. In that case, you are personally responsible for any damage above your policy limit. Better to carry slightly higher property damage coverage than have to pay out of pocket to fix a BMW.

Don't forget to ask your agent about Medical coverage, Uninsured Motorist and Underinsured Motorist.

For more valuable information, go to Insurance Tempe

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