How much car insurance do I need?
Navigating the car insurance jungle can seem very confusing at times and many consumers often ask the question “How much car insurance do I really need?”
This is a very fair question since if you have never been in a car accident, made an insurance claim or learned about the basic types of car insurance coverage how would you really know how much car insurance is enough?
Almost all of the major car insurance companies advertise “Get a Car Insurance Quote” or “Save Money on Car Insurance” however the question of how much you need is often buried away from the main pages of company website or never really discussed at all.
Car insurance policies are created based on risk and with the sole purpose of creating profit for the car insurance companies however sometimes you can either get stuck with (a) too little coverage or (b) overpaying for too much coverage.
States do have minimum car insurance requirements but these limits are so low you really need to ignore them and always get more coverage.
Before choosing any car insurance company learn about the different types of car insurance, compare the finer points such as deductibles and policy limits and always compare at least a few quotes. We can help you get FREE car insurance quotes online so just enter your ZIP CODE and quickly find local car insurance companies.
Why Do You Need Car Insurance?
Car insurance is often viewed as an unnecessary expense since many drivers will never make a claim however car insurance is vital to the protection of your family and property for a number of reasons.
First, its illegal to drive without car insurance so you are risking losing the privilege to drive without it. That should be enough for some people but sadly it is not.
Secondly, car insurance provides coverage for accidents. Accidents by definition are occurrences that happen simply by accident and are rarely foreseeable. With the right amount of car insurance your family and property are protected by having coverage for medical expenses, loss of wages and numerous other items which can literally bankrupt most American families in a matter of minutes.
What Types of Auto Insurance are available?
A number of car insurance types exist however the most important ones every driver should have are liability coverage, comprehensive car insurance and collision coverage.
Liability insurance is the only car insurance policy required by most all states. This coverage provides protection for accidents you are involved with which cause either (a) damage to other vehicles or (b) damage to your vehicle which is not the fault of another car (tree falling down for example). Note that liability insurance is not a blanket protection from litigation however it does drastically reduce the need for a lawsuit as minimum liability insurance limits are generally based on the average cost of a vehicle so no further clam is need as liability coverage can usually cover the cost of any damage to a vehicle. However, if the damage exceeds the policy limits (which is often the case with luxury cars) you can have personal liability to the damage above and beyond your coverage – which is one of the reasons we highly suggest always securing more than just state minimum requirements for liability insurance.
Collision insurance provides protection for “road-related” damages. For example if you strike another car while operating the vehicle on the road or vice versa. The typical definition of a car accident applies the most to collision coverage.
Comprehensive insurance is a critical type of car insurance to protect your vehicle however it is almost never required by law. The logic behind this is having comprehensive car insurance is more of a self-insurance rather than coverage to protect other drivers. Comprehensive car insurance provides coverage for items such as car theft, storm damage, key scratching and items which cause damage to the car and contents inside.
Other types of car insurance exist such as bodily injury liability and personal injury protection (PIP) exist but depending on who the car insurance company is you may or not need this. Learn more about Bodily injury liability and personal injury protection here.
How do I start Car Insurance Comparison?
Starting the search for a new car insurance company is easy. Simply enter you ZIP CODE above to Find Car Insurance Companies nationwide who can offer coverage today.
Don’t forget to learn about car insurance discounts!
