Buying a minimum vehicle liability policy is a legal requirement for anyone who is planning to start driving. If you have to buy something anyway, it would be better you find the best coverage and the lowest price for it. Instead of thinking it is something you have to have, you should make the most of it. So you should always ask; how much car insurance do I need? One day, you may end up in an accident and make a claim or compensate others who claim against you. Ask yourself what level of coverage is enough?
The most important part of your venture into arranging a policy is answering how you want to be protected. Each state has different minimum requirements that will be your starting point in this process. There are many options you can have on top of this basic legal coverage. It is nice to have the most comprehensive coverage, if only you did not have to pay for it. Therefore, you have to find a way of balancing costs and benefits. Perhaps you should first read this post titled; How Does Automobile Insurance Work.
While you do not want to end up considerably short when you make a claim, it may still be alright to accept the risk of paying part of the potential damages out of your pocket. This is a commonly practiced way of saving money on premiums. For example, if you have to pay two hundred dollars a year to cover a chance of suffering one thousand dollar loss if ever happens you might be able to take a risk. Such loss may be something you can easily handle yourself. If it happens, you lose one thousand dollars. If not, you can keep saving two hundred dollars a year until the rest of your driving life.
By looking at your needs and priorities carefully you can come up with an answer. From then onward, all you need to do is to check every once in a while if the circumstances changed enough for you to make adjustments.
Let’s have a quick look at possible coverage options before starting to pick. First of all, state minimum liability requirements are far too low. Most auto insurance coverage recommendations start with buying at least $100,000/$300,000/$100,000 level of liability car insurance.
Some of the possible additional covers are collision, comprehensive, uninsured motorists, personal injury protection, rental reimbursement, gap insurance, accidental death indemnity and emergency assistance coverage. You can read about auto insurance policy options further on that page, instead of repeating it here.
How Much Car Insurance Do I Need? – 10 Points to Check
These are the 10 factors that affect what you add and exclude from your policy.
- What Car Insurance Should I Get in my Financial Position?
People with no problems are more comfortable to choose what they want in comparison with people with tight budgets. However, you can make up the difference by shopping harder and finding cheap auto insurance quotes online. Also these budget auto insurance tips can help you get badly needed savings so that you can buy what you require. Your financial position can affect your credit score positively or negatively. If you are having money problems you may even need to look for the best car insurance for bad credit in order to buy the coverage you need.
- How Much Auto Insurance Is Enough for my Vehicle?
This largely depends on the type and age of automobile to be insured. When you need insurance for new cars the amount of coverage will first of all depend on if you have a loan or not. Most people with new vehicles would want full coverage for it including Collision and Comprehensive. Your lien holder would want Collision and Comprehensive as well with maximum $500 deductibles. They would also want gap car insurance coverage. People usually don’t buy Collision and Comprehensive for an old clunker.
- Do You Have Risky Listed Drivers?
If you have a high risk driver in your household you will probably be mindful of what you add onto your policy and look for cheap high risk vehicle insurance to get what you want.
- What Coverage Is Good with my Risk Preference?
Some people are very scared of risk and want to shift it off if they can as quickly as possible. The fact that you may be risk averse or a risk taker will affect your response. Also, it will affect level of deductibles you may be happy with. If you don’t know how do deductibles work read the post.
- How Much Auto Insurance Should I Carry in my Circumstances?
There are so many small and big factors in your circumstances that needs to be considered before you can answer the question of what vehicle insurance should I get. As an extreme example, some disabled drivers have to modify their vehicles and buy insurance for modified cars.
- What Kind of Vehicle Insurance Do I Need with my Work?
Your job is important in four aspects. If you have a good job with reasonable health insurance benefits you wouldn’t probably need to worry much about buying Personal Injury Protection since your health insurance would cover your and your family’s vehicle related injures too to a degree. Secondly, you may want to add business use to your policy if your job requires you to carry work related equipment often in your private automobile. Thirdly, pleasure use car insurance, which is cheaper, may be enough if you don’t use your car to commute to work or it is only couple of miles away. The opposite is that you may need high mileage insurance if you are traveling a lot. Fourthly, your job may qualify you for further discounts that allow you to buy whatever coverage you want. Things like your work may look to be irrelevant but they affect your choices.
- What Automobile Insurance Do I Need in my Age?
Choices people make when they are young and when they are wiser usually totally different. Also, a teen student isn’t usually flush with money to spend on cars or insurance.
- How Secure Am I about my Surroundings?
Living in a big city or a lovely little village gives us different sense of security. When you feel safe and secure you don’t really get overly concerned with things like insurance. On the other hand, big cities scare and worry people to buying more coverage. Know it from own experience that it isn’t easy to decide how much car insurance is enough in a city.
- Does My Driving History Worry or Comfort Me?
Driving history tells insurers about how well a driver you are and it tells you what your claim expectations are. When people believe that they are good drivers they buy insurance just in case. When they know they are likely to crash at least once or twice in the near future they’d better buy a solid cover. Tickets increase your premiums and reduce your ability to buy affordable policies too. For example if you ask questions like how much does a ticket increase my insurance you are already worried about the costs maybe more than the coverage.
- How Does my Environment Influence Me?
People are affected by their friends, family and work environment. Many people are still with their insurers whom their parents helped arrange when they were teenagers.
Of course, each cover will be beneficial to have. However, you need to check their costs by getting quotes with and without and decide if it is worth having. Furthermore, you may have either a good reason not to waste money on or it may actually be covered by a different policy. We recommend that you do a full auto insurance quotes comparison online to get the coverage you decided to buy at a reasonable price.