How Much Car Insurance Should You Buy?
Car insurance is one of the most dreaded chunks in your budget. And depending on which state you live in, it could be a smaller or larger chunk of your budget than your neighbors across state lines.
How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it's about as useful as a stock broker's tip to buy low and sell high. It might be sound logic but it doesn't get you any closer to an educated decision. There are a few filters that need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? And fourthly, what are you protecting?
What do the minimums cover?
Now that you know what your state requires, what are you actually covered for once you purchase the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the accepted minimum.
Coverage Definitions
Bodily Injury Liability
Covers other people's bodily injuries or death for which you are responsible. It also provides for a legal defense if another party in the accident files a lawsuit against you. Claims for bodily injury may be for such things as medical bills, loss of income or pain and suffering. In the event of a serious accident, you want enough insurance to cover a judgment against you in a lawsuit, without jeopardizing your personal assets. Bodily injury liability covers injury to people, not your vehicle. Therefore, it's a good idea to have the same level of coverage for all of your cars. Bodily Injury Liability does NOT cover you or other people on your policy. Coverage is limited to the terms and conditions contained in the policy.
Comprehensive Physical Damage Coverage
Covers your vehicle, and sometimes other vehicles you may be driving for losses resulting from incidents other than collision. For example, comprehensive insurance covers damage to your car if it is stolen; or damaged by flood, fire, or animals. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as high a deductible as you feel comfortable paying out of pocket. Coverage is limited to the terms and conditions contained in the policy.
Collision Coverage
Covers damage to your car when your car hits, or is hit by, another vehicle, or other object. Pays to fix your vehicle less the deductible you choose. To keep your premiums low, select as large a deductible as you feel comfortable paying out of pocket. For older cars, consider dropping this coverage, since coverage is normally limited to the cash value of your car. Coverage is limited to the terms and conditions contained in the policy.
Medical Payments
Covers medical expenses to you and your passengers injured in an accident. There may also be coverage if as a pedestrian a vehicle injures you. Does NOT matter who is at fault. Coverage is limited to the terms and conditions contained in the policy.
Uninsured Motorist Coverage
Covers bodily injuries to you and your passengers when the other person has no insurance or not enough insurance in a crash that is not your fault. In some states, there is also uninsured motorist coverage for damage to your vehicle. Given the large number of uninsured motorists, this is very important coverage to have, even in states with no-fault insurance. Coverage is limited to the terms and conditions contained in the policy
Personal Injury Protection Coverage
Covers within the specified limits, the medical, hospital and funeral expenses of the insured, others in his vehicles and pedestrians struck by him. The basic coverage for the insured's own injuries on a first-party basis, without regard to fault. It is only available in certain states.
Property Damage Liability
Covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object. Coverage is limited to the terms and conditions contained in the policy.
Rental Car Reimbursement
Covers renting a car if your car isn't drivable or while your car is being repaired because of a covered accident.
What else is available and can you afford it?
Did you come across a coverage and think, "I need that but it isn't required by state law" when you were reviewing the coverage definitions? Chances are you did. Can your budget afford the additional expense of these protections? Or maybe more to the point; can you afford NOT to have these additional protections? At CarInsurance.com it's easy to get multiple quotes all with a click of your mouse. And during the quoting process, it's simple to add or remove coverage to see how additional coverage will affect your budget.
What are you protecting?
What assets need to be protected from being plucked away if you cause injury or damage?
A) Your car itself. If this is a significant asset, or at least the bank you owe money to thinks so, then you will need comprehensive and collision.
B) Your net worth. Do you have an enormous net worth to protect. If so, either get it out of your name and into a trust or buy all the insurance you can. If you have little or nothing to protect, then you can get by with less and still be financially responsible.
However, after you determine how much protection to get, always ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little cost.
Car insurance isn't flashy. There is no "wow" factor and the opposite gender isn't going to be impressed by the size of your policy. But not having enough can be the difference between financial stability and financial ruin. For what its worth, CarInsurance.com finds financial stability incredibly appealing.
Visit http://www.carinsurance.com to Check Out Car Insurance Quotes
Erick Pace is a representative of CarInsurance.com. You can visit CarInsurance.com at http://www.carinsurance.com or contact them at 1-877-327-8728.
CarInsurance.com's online insurance marketplace gives an opportunity to consumers and to insurance companies. We offer the ability to shop for car insurance online.
Consumers can receive quotes from many insurance companies, in some states you are able to purchase your insurance instantly, online. You don't have to drive your car to buy car insurance. Buy online...anytime!
More Resources
Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting
More Insurance Information:
Related Articles
Health Insurance Providers Online - Benefits to Applying Online
Health insurance providers are going online to find new customers. As a result, there are more affordable health insurance options for families, the self-employed, and small business owners.
How To Get Cheap Whole Life Insurance Quotes
Whole life insurance quotes the most expensive kind of policies that are on the market due the fact of cash value over time. Whole life insurance is permanent life insurance coverage that lasts as long as you live and continue to make ontime premium payments.
A Life Insurance Quote Became Reality
Life insurance quoteThank goodness John took his life insurance quote seriously. It didn't prevent our daughters from wishing he were still here but thanks to his foresight they and I still have the things he worked for because he turned that life insurance quote into a policy before his untimely death.
If You Rent A Home, Protect It By Buying Renters Insurance
Renters insurance is often overlooked by people who are renting their house or apartment. Many people don't realize that their landlord's insurance only covers the building that you live, there in no coverage for your personal belongs.
Health Insurance Quotes Online - Tips On Finding a Good Provider
Since 2001, major health insurance providers have been allowing consumers to buy policies online. Through the convenience of the internet, consumers are able to compare prices and coverage to find the best insurance policy for them.
10 Tips to Save on Healthcare Insurance
Americans shopping for their own healthcare insurance can substantially cut premiums by following 10 simple steps, according to leading insurers.Answer Financial Inc.
Disability Insurance For The Long Term
Disability insurance covers you for an extended period of time. Should you be injured or take ill and as a result be unable to perform the duties of your employment, you will be covered under short term disability, then long term disability insurance will cover you.
Why Boats Are A Pleasure... But You Still Need Boat Insurance
One of the greatest pleasures that a man can have is owning his own boat. It goes back to the days of adventure on the high seas when a man was absolute monarch of his realm as a captain of his ship.
Term Life Insurance Help
Life insurance can be a very scary thing. If you buy insurance when you're 30, but don't die until you're 90, chances are you're going to come out on the loosing end of insurance.
Online Insurance Quotes California Auto
Finding insurance quotes for California auto is now pretty easy. There was a time where finding auto insurance at a price we were willing to pay took a lot of driving and calling around.
Who Else Wants to Understand Travel Insurance Policy Language?
Aren't all travel insurance plans basically the same?No. When you read travel insurance policy language, remember that as with any legal document, the definition of the terms is what governs the working of the policy (including payment of the claim).
Your Cars After-impact Diminished Value
The(ACV)Actual Cash Value Policy DOES NOT insure the property itself but the VALUE of the property.Okay let's say the insurance company chooses to "Repair" their insureds damaged property (as is their option within their contract of insurance).
Affordable Life Insurance!
So, you've decided to purchase life insurance. Well then, you have made a good decision! If you have dependents, you know that you must provide for them long after you are gone.
Understanding How Your Credit History May Affect Your Car Insurance Coverage
Many personal auto insurance companies consider your credit information when determining how much premium to charge for your insurance. So if you are calling around for new insurance, keep in mind that many insurers are looking at your credit history.
Affordable Insurance Quotes To Save You Money!
Whether you're looking for insurance quotes for auto, life, travel or health you can find some great rates on the internet. Insurance quotes coverage can provide peace of mind and also financial coverage in the event that something untoward happens.
Why Do You Need Homeowners Insurance?
The biggest single investment most people make in their lifetime is buying a home, condominium or townhouse. What you want to do is protect your home, personal property and any type of liability with a homeowner's insurance policy.
What Is Meant By Automobile Insurance Standard Coverage?
Automobile insurance standard coverage is the basic amount of insurance coverage that is required by law in order for an individual to legally operate a motorized vehicle. You can simply it even further with the blanket statement as being the mandatory amount of auto insurance coverage a driver must possess.
Health Savings Accounts (HSA): Do I Still Submit My Bills to Insurance When Using HSA Money?
The Health Savings Account (HSA) is becoming well-known as an incredible tool to reduce health insurance premuims and still provide good security for healthcare emergencies.This article is about submitting your medical bills while you are still under your insurance deductible, and what to consider before doing that.
Why Should You Purchase Your Auto Insurance Online?
If you're interested in slashing your auto insurance bill in half then there's no reason why you shouldn't consider purchasing auto insurance online. Buying your auto insurance online is extremely easy and very convenient.
Health Savings Accounts (HSA): How Do I Tell a Good One from a Bad One?
The Health Savings Account (HSA) is becoming well-known as an incredible tool to reduce health insurance premuims and yet provide good security for healthcare emergencies.But what should consumers watch out for? Are there good HSAs and bad HSAs?The answer is "not really.