We're talking car insurance here. Class 1 insurance sounds like it must be at the top of the line, but actually Class 2 provides coverage for more people.
The first thing to keep in mind is that the coverage applies to one or more individuals, not the vehicle. You are completely covered with Class 1 if you are driving your own vehicle, a vehicle owned by a relative who lives with you, or if you are on a bicycle or walking. The policy will also cover spouses and other relatives that you share a residence with. If you get Class 2 insurance, anyone who has permission to use or occupy your vehicle is also covered, even if they don’t reside with you. However, Class 2 people are not covered if they are injured by a vehicle as a pedestrian. They only receive coverage while they are in a vehicle.
Class 1 buyers also have the privilege of “stacking” in about 30 states in regard to uninsured motorist coverage. Let’s say you have two cars with uninsured motorist coverage of $100,000 each. If you are hit by an uninsured driver, you can add together the coverage from both vehicles totaling $200,000, should you need that much for medical bills and to repair or replace your car.
It’s always a good idea to check your policy every year at renewal time to make sure you have enough coverage or even if you have too much. There are state-required minimums, but if you own a house, for example, someone could go after it if you cause an injury in a car accident, so you may need much more than the minimum coverage. If your car is very old you may not need a lot of collision coverage, but certainly keep enough personal injury and liability coverage.
