How much insurance should I buy? Any insurance agent worthy of your salt will tell you to buy everything you can. Although this is a good general rule, it is just as useful as the advice of a stock broker to buy cheap and sell expensive. It may be logical, but it does not bring you closer to an educated decision. There are some filters that must be taken into consideration to make an educated decision. First of all, what is the minimum coverage required by the state you live in? Secondly, what is the minimum coverage? Third, what other coverage is available and can you afford? And fourth, what are you protecting?
What are the minimums?
Now that you know what your status requires, what’s really covered once you’ve bought the minimum? Using the coverage definitions that follow, find the types of coverage required and see what your state says is the minimum accepted.
Liability for personal injury
It covers the physical injuries of others or the death of which you are responsible. It also provides legal defense if another party involved in the incident initiates a lawsuit against you. Claims for personal injury can include medical expenses, loss of income or pain and suffering. In the case of a serious accident, you want sufficient insurance to cover a lawsuit against you in a case, without endangering your personal resources. Responsibility for bodily injury covers injuries to people, not to the vehicle. Therefore, it is a good idea to have the same level of coverage for all cars. Liability for personal injury does NOT cover you or other people in your policy. The coverage is limited to the terms and conditions contained in the policy.
Complete coverage of physical damage
Covers your vehicle and sometimes other vehicles that you can drive for losses from non-collision accidents. For example, comprehensive insurance covers damages to your car in case of theft; or damaged by floods, fires or animals. Pay to repair your vehicle minus the deductible you choose. To keep premiums low, select a franchise as high as you feel comfortable paying from your own pocket. The coverage is limited to the terms and conditions contained in the policy.
Covers damage to your car when your car hits or is hit by another vehicle or other object. Pay to repair your vehicle minus the deductible you choose. To keep premiums low, select a large deductible when you feel comfortable paying from your own pocket. For older cars, consider leaving this coverage, as coverage is usually limited to the cash value of your car. The coverage is limited to the terms and conditions contained in the policy.
It covers medical expenses for you and your passengers injured in an accident. There can also be a cover if, as a pedestrian, a vehicle hurts you. It does not matter who is to blame. The coverage is limited to the terms and conditions contained in the policy.
Coverage of uninsured motorists
It covers personal injury to you and your passengers when the other person does not have insurance or does not have enough insurance in an accident that it is not your fault. In some states, there is also coverage of motorists without insurance for damages to your vehicle. Given the large number of uninsured motorists, this is a very important cover, even in states with no fault insurance. The coverage is limited to the terms and conditions contained in the policy
Coverage of protection against personal injury
Covers within the specified limits, the medical, hospital and funeral expenses of the insured, the others in their vehicles and pedestrians affected by it. The basic cover for personal injury of the insured person in first person, regardless of the defect. It is only available in some states.
Liability for material damage
It covers you if your car damages another person’s property. It’s usually your car, but it could be a fence, a house or any other property damaged in an accident. It also provides legal defense if another party submits a lawsuit against you. It is a good idea to buy enough of this insurance to cover the amount of damage the car could cause to another vehicle or object.
The coverage is limited to the terms and conditions contained in the policy.
Refund of car rental
It covers the rental of a car if yours is not manageable or if your vehicle has been repaired due to a covered accident.
What else is available and can you allow it?
Did you find coverage and think, “Do I need it, but is not required by state law” when I was reviewing the coverage definitions? You probably did it. Can your budget pay the additional costs of these protections? Or maybe more to the point; Can you afford NOT having these additional protections? In CarInsurance.com it is easy to get more quotes at the click of a mouse. And during the quotation process, it’s easy to add or remove coverage to see how additional coverage will affect your budget.
What are you protecting?
What resources should be protected from being torn if they cause injury or damage?
A) Your self itself. If this is an important resource, or at least the bank that you owe money to, think so, then you will need a complete collision.
B) Your net assets. Do you have a net worth to protect? If so, get it out of your name and into a trust or buy as much insurance as possible. If you have little or nothing to protect, you can settle for less and remain financially responsible.
However, after determining the amount of protection to be obtained, always ask how much is even more for the next level. Very often, significant coverage can be achieved at a very low cost.
Car insurance is not flashy. There is no “surprise” factor and the opposite sex will not be affected by the size of your policy. But not having enough can be the difference between financial stability and financial ruin. For what it’s worth, CarInsurance.com finds unbelievably attractive financial stability.