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Is Health Insurance Necessary with Auto Insurance?

Often, the laws of a state will require an individual to carry certain levels of car insurance. In these instances, driving without car insurance is illegal and can result in fines, revoking of your license, and even jail time. Liability auto insurance covers medical needs that arise as the result of an auto accident, which leads many people to question if health insurance is necessary with the proper auto insurance. The two insurance types are very different.

Health Insurance Explained

Health insurance, or medical insurance, covers an individual who is in need of medical treatment, whether it be a surgery, an accident, or medications. Medical bills are becoming increasingly expensive, and it’s important to be covered in case the worst happens. There are different levels of health insurance that deal with individual aspects of treatment. Only rarely will this come into play in an auto accident. It is not required by law, but it’s very smart to be covered by health insurance, because you never know when an accident or illness will strike.

Liability Auto Insurance Explained

Liability insurance is two-part coverage: it covers the property damage resulting from an accident, and it covers the bodily injury that results from an accident. After an auto accident, the driver’s auto insurance will take care of the bills up front for anyone harmed in the non-fault vehicle. After a certain period of time, the person’s health insurance may kick in, but typically all the costs are the responsibility of the at-fault auto insurer. A type of auto insurance called no fault coverage will also pay for the wages lost as a result of a car accident, similar to the way health insurance works.

The State Laws Concerning Auto Insurance

In every state, drivers are required to be covered by a certain amount of auto insurance. To register a vehicle with the Department of Motor Vehicles, you will need to present proof of insurance. Liability insurance, which deals with medical expenses, requires a driver to have a certain amount of coverage for both bodily injury and property damage. The actual amount varies from state to state, so it is important to check your state’s laws with the state Department of Insurance. Normally it is set in increments of five or ten thousand dollars.

Requirements for Auto Insurance

When specified by the state, the requirements for auto insurance will look something like this: 25/50/15. The first number represents the coverage allotted for individual bodily damage, and stands for $25,000. The second number represents the amount that can be paid out for bodily injury for the entire accident, no matter how many people are involved. The third number represents the maximum amount to be paid for property damage. It is always wise to have more coverage than the minimums, as medical and repair costs and potential legal expenses could exceed the minimums very quickly.

Driving without auto insurance is not only illegal, it’s also very dangerous. It’s important to be covered as much as possible by both auto and health insurance at all times. Having sufficient auto liability coverage will come in very handy in the event of a major accident, without having to involve your health insurance. You can now get cheap car insurance quotes online by clicking the “Get Quotes” button at the top of the page. You can even find cheap car insurance for teenagers.

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