How Much Auto Insurance Do I Need?
One of the most common questions that we receive from clients is this: How much auto insurance do I actually need for myself?
Unfortunately, this isn’t a one-size-fits-all question. Every person’s situation is different, and the amount of insurance you take out depends on a variety of factors, including the type of car you drive, how much you drive, what your annual income is and more. However, here are some tips.
Most car insurance policies take into account the following items:
- Bodily injury liability, which pays for medical expenses of people in a car crash when you are at fault.
- Property damage liability, which pays for damage done to the other person’s car f you were the one at fault for the crash.
- Personal injury protection, which covers the medical expenses of you and your passengers after a crash, and potentially any wages you lose.
- Underinsured/uninsured coverage, which covers high costs incurred if you were hit by someone who either has no auto insurance or minimal coverage.
- Collision coverage, which covers any general repairs to your car after accidents.
- Comprehensive coverage, which covers costs for stolen or damaged vehicles.
If you are looking to save money, you can likely forego significant coverage (beyond the minimum) in personal injury protection, especially if you already have health and disability insurance. You can also choose plans with higher deductibles, which have lower premiums. Just be sure to choose a deductible that you can still afford in an emergency situation; you don’t want to find yourself bankrupted after getting in an accident because you can’t afford to pay your deductible.
However, you should absolutely be sure that you have good coverage for uninsured and uninsured motorists, as the cost is relatively low but the coverage it grants you is extremely valuable after an accident. It’s also worth paying for good collision and comprehensive coverage, especially if you park your car on the street or live in an area with a reputation for car theft.
Of course, as we mentioned, recommendations vary from case to case. If you have specific questions about how much coverage you should take out in your auto insurance policy, we encourage you to contact us today.