Car Insurance How Much Do You Need?
Car Insurance Cost
If you drive your own car, you need to have some type of vehicle insurance. Your auto insurance made up of various policies, which cover you in different ways. For example, liability insurance covers repairs and medical or surgical management of the party you hit in an accident, collision coverage will pay for repairs to your car in the event of an accident, and a comprehensive policy will pay for expenses if your car is stolen or damaged in a non-collision event. Insurance allows you to control risks and preserve wealth, and is therefore a vital component of a good financial plan.
How much auto insurance do I need? Nearly every country or state made it a legal requirement for car owners to have some form of vehicle insurance, liability coverage in majority of locations. In the US, each and every state has minimum coverage requirements. Given that a country’s or state’s minimum insurance requirements vary, it is best to contact relevant agencies in your area. It is quite likely that the minimum coverage requirement in your state is comparable to what you actually need. More often than not, it is wise to have more than your state’s minimum coverage. If you caused a major accident, it is quite likely that the other party’s hospitalization bills or repair fees will go over your coverage limitations. In such situation, it is possible that your assets will be seized to pay for repairs and hospitalization expenses. Having said that, you should make sure that you are covered for an amount equivalent to the total value of your assets. Car Insurance Cost
Review other insurance products you already have to check for redundant coverage. For instance, if you've got health or disability insurance via your employer, you can drop personal injury protection (PIP auto insurance), or just minimum coverage, if it is required. You also have to take the car you intend to drive into account. If youâ€™re using an old car, you can forego of collision and comprehensive coverage because more often than not it would cost less to fix than to cover with insurance. Industry experts recommend that if your vehicle is worth less than $2,000, comprehensive and collision coverage is not needed or impractical. Regardless of what kind of coverage you intend to buy, the best technique to determine your insurance needs is to establish how much you are willing to pay out of your own pocket versus how much you want the insurance company to cover.
Car Insurance Cost
Published on Jan 25, 2013
If you drive your own car, you need to have some form of vehicle insurance. Your auto insurance is a collection of various policies, which c...