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How much car insurance coverage do I need?
The amount of auto insurance coverage you need depends on a variety of different factors. When choosing your coverage limits and deductibles, consider the various risks that you, your passengers, and your auto are likely to face. You also need to consider the assets you own, which your automobile insurance coverage helps protect.
The million dollar question will always be is my Coverage Adequate?
There’s more to this insurance game than saving money. In fact, while it’s nice to lower your insurance costs, it’s probably even more important to make sure you, your loved ones and your assets are covered adequately. It’s not a pleasant thought, but insurance is about worst case scenarios. It’s also about peace of mind knowing that you have the worst case scenarios covered.
Basic liability coverage
This is the single most important type of auto insurance coverage. Carrying too little auto accident liability can expose you to judgments and legal costs for years to come.
Almost every state requires you to buy a minimum amount of liability coverage. Chances are that you will need more liability insurance than the state requires because accidents cost more than the minimum limits. Not a lot of money for medical bills, lost wages, and compensation for pain and suffering. If you’re found legally responsible for bills that are more than your insurance covers, you will have to pay the difference out of your own pocket. These costs could wipe you out!
You should probably carry more.
Additional auto insurance coverage (anything you get over the minimum) gets cheaper as you buy more. This means that your premium goes up a little while your protection goes up a lot.
Pay special attention to bodily injury liability. It's easy to imagine the cost of personal injuries totalling more than a million dollars from a somewhat serious accident.
Do I need special auto insurance coverage if my car's leased or financed?
Your loan or leasing agreement provides details on the kinds of auto insurance coverage finance institutions require. Though each leasing agent or lender has different requirements, most lenders and leasing agents require you to buy comprehensive and collision coverage when you purchase your auto insurance policy. Many also require liability limits in excess of your state's auto insurance coverage requirements.
When buying auto insurance for your leased car, remember that insurers pay only the actual cash value (the market value factoring in age, mileage, and wear and tear) for a vehicle, rather than that vehicle's replacement cost. If you get into a car accident and your leased car is severely damaged, you may find yourself responsible for damages that your auto insurance policy doesn't cover.
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Fast Free Quote
Most Companies offer Automobile Insurance Discounts for Good Drivers, Non Smokers, Good Students, Senior Drivers, Multiple Car Discount, Auto/Home and Educational Discounts such as Youth Education and Safety courses.
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