What Level of Auto Insurance Coverage Would Be Enough?

One of the key benefits of having a policy is that it offers peace of mind of knowing that you would be compensated if the worst happens on the roads. This would be a great starting point when making car insurance purchase decisions? This post will discuss how should motorists go about determining comfortable coverage levels and setting out to get it at the best price possible.

The first thing is that you should buy a lot more liability than state minimum automobile insurance. There was an article on a newspaper the other day about an accident in which 3 Lamborghinis collided with each other in Singapore. The total loss is $2.2 Million. The point is that you cannot even make up a story like that. What are the chances of 3 Lamborghinis crashing into each other? Also, hospitals are not cheap anymore. The injuries in an accident can cost substantial amounts. You don’t want liability coverage to run out. Remember that there are many ambulance-chasing lawyers and they will go after you if they believe you have got assets, on no win no pay bases.

Besides, isn’t it enough that you caused them pain and suffering. Why should they have to chase you or be worried about the costs of their medical treatments? Liability limits should be pushed up to at least $100/$300/$100 or the highest you can buy, regardless of having assets to worry about or not. Most people wouldn’t be comfortable with the possibility of exhausted liability limits before making good on people’s damages and injuries.

You may think that it would cost you a fortune to achieve that. Most minimum limits are at around $20,000 and we are talking about multiplying it by at least 5. What you need to remember is that premiums will not be multiplied by 5 because the cover has been. In most cases, you would only need to pay one or two hundred dollars more. Get a quote for two different levels of auto insurance liability limits and see.

The next step is to add Uninsured Motorists Coverage because they are not easy to chase after to make them pay for your damages. Let’s face it, the national average is at 14% and in some states this figure is as high as 26%. There is a high chance one of them will cause harm to you or family. You should consider having if it isn’t automatically included.

Most people have reasonably valuable cars. So, you would want to protect the investment. As a general rule, motorists should buy Collision and Comprehensive coverage if the car is over $4,000. But this limit is up to the individual. You can find cheap full coverage auto insurance for a car that is not worth much by setting deductibles at $1,000. This would specially be true if you have a clean driving history. Collision and Comprehensive would pay for nearly all damages to an automobile.

If you have a loan on the vehicle, the lender would have a say on the matter too. It is best to check this and get quotes for possible provisions required before signing a loan agreement. Many people may look at the monthly loan payments and forget about additional costs. Also being keen about getting the keys to a new auto could make people overlook things.

Drivers may not worry much about Rental Reimbursement, especially if they have access to another vehicle or have good public transport nearby. But, if you are so dependent on the automobile, perhaps it is something you should consider. There are reasonably priced and well-prepared package vehicle insurance policies that may come with several useful extras.

Probably the best thing to do is to decide on comfortable level of coverage and get several quotes for it. If they are coming above budget you may look into dropping some to see how much the price goes down. Sometimes, savings achieved as a result of this may not be as much as you would expect. It is easy and quick to get a few quotes and buy a policy online. Find out how long does it take to get car insurance and start the process here if the renewal is due shortly or you are adamant to switch now.

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