You may be wondering why auto insurance premiums go high whenever health insurance premiums increase? Are they interrelated? The fact is that there is no direct relation between health insurance and your car insurance. Both are independent insurance coverages that cover different fields. However, the cost or rates of a auto insurance depends on the cost of health insurance premiums. Why? Most states require a liability insurance that entitles the offended party medical bill coverage. When health care bills go high consequently, health insurance goes high too. Because the auto insurance pays for the medical bill for whoever is injured in the other party then naturally, they will have to increase their premiums to keep up with their possible medical payables.
Depending on the rules of the state, the auto insurance usually pays for the medical bill of the insured or offended party during a car accident. The health insurance will not cover any amount unless the auto insurance coverage has been exhausted. Other times, the health insurance will not cover any medical bills until the party at fault is pointed out. However, rules vary in every state and for you to be sure, you need to clear this out with your auto loan agent. The best way is to avoid any accidents are by driving slowly, never drink while you drive, and practice defensive driving. It always pays to be careful. However, there might be instances where accidents inevitably happen and this is where car insurance or a health insurance will come in useful. Aside from the required liability insurance coverage, make sure that you also protect yourself by getting additional coverage like a comprehensive one or a Personal Injury Protection coverage. There are a lot of people who do not see the importance of having an insurance but rest assured that this can greatly help you in times of great need.