How Much Car Insurance Do I Need?

Do you know how much car insurance you need? If you are unable to predict the future, it is a difficult question to answer. Here are four items to consider:

• Requirements. Find out what insurance coverages and limits are required. Check if your state requires liability, medical payments, personal injury protection (PIP), uninsured motorists, or underinsured motorists coverages. If you have a car lease or loan, the bank may require comprehensive and collision coverages.
• Limits. Consider purchasing limits higher than the minimum required. Do you think the minimum amount would be enough to pay for someone else’s medical expenses if you caused a car accident? Would it be enough to cover you and your family’s expenses? Compare how much more it would cost to purchase higher limits. You may be pleasantly surprised at the value you could get by increasing your limits and decreasing your chances of being sued for additional expenses. Raising your deductibles may help offset the additional cost.
• Coverages. Consider optional coverages. State and financial insurance requirements are made for the general population, but there may be other coverages you would need or expect your car insurance to cover. Some examples are: 
  • Lease/loan coverage to close the gap if your vehicle is totaled and you owe more than it is worth 
  • Transportation expense coverage to reimburse for alternate transportation if your vehicle isn’t drivable
  • Glass coverage to repair or replace your windshield without a paying a deductible
  • Replacement coverage to get a newer car if your car is totaled
• Professional advice. Consult with your insurance agent. You do not have to do this on your own. Your professional insurance agent is available to help protect the things that are important to you and determine how much insurance you need. Reach out to your agent and review your auto insurance coverages. 

Since we don’t know what each day will bring, we can’t know for sure how much car insurance is enough. However, following these tips will help you prepare for the ride ahead.