How do you choose the right car insurance? Do you know how much coverage you should have? Are there laws regarding how much you need? Your best option is to speak with an independent insurance agent to find out what fits your personal situation, but to get you started, here are a few tips on selecting the right car insurance.
Coverage Types and Requirements
Some states require minimum liability limits whereas other states do not require that you carry any insurance at all. Find out if your state has any minimum requirements and what they are. A typical limit is $25,000 per person and $50,000 per accident. If several people are injured in one accident where you are at fault, $50,000 is not going to cover much. You may be held personally liable for damages above what your insurance covers. Therefore, it may be a good idea to purchase more than the minimum requirements to better protect yourself. This is also the reason to have insurance even if it’s not legally required.
Deductibles apply to physical damage to your car. You are responsible for the deductible amount; insurance then covers costs that exceed it. Higher deductibles result in lower premiums, but it also means higher out-of-pocket expenses when damages occur. If you have a loan for your vehicle, your lender may require certain deductible amounts.
Everyone loves to save money so be sure to ask if there are any insurance discounts available to you. Most companies offer discounts for being a safe driver, having multiple cars on the policy or for insuring your home and vehicles through the same company. Your independent insurance agent can also inform you of other discounts through group memberships or associations.
Other Tips on Selecting the Right Car Insurance
An independent insurance agent will be able to give you more information and tips on selecting the right car insurance. A lot depends on the state that you live in, the type of car you own, what you use your car for, etc. Every person and every car is different. In many cases, purchasing additional coverage offers great protection for minimal added cost.