There are different kinds of coverage that may be included in your car insurance policy. One of the most commonly asked questions is how much car insurance you should get. There’s no one-size-fits-all answer to this question.
Employing an independent insurance agent can help you determine the type and amount of coverage to get based on your specific needs while also ensuring that you abide by state laws. The following are the different kinds of car insurance coverage you may choose to have in your policy.
Bodily Injury
Each state has a different minimum coverage for bodily injury. The lowest amounts to $10,000 per person while the highest can reach up to $500,000 per person. If you hit and injure a person with your car, you risk getting sued for a whole lot of money. For this reason, it is essential to ensure that the amount of liability coverage you have is high enough to cover your assets.
If your coverage is insufficient, you may lose your assets as a form of compensation. Getting additional coverage through Personal Excess Liability is one option. However, experts recommend at least $100,000 of coverage per person. Keep in mind that your liability insurance should be higher the greater the value of your assets.
Property Damage
Again, the minimum coverage for property damage varies for each state. The minimum, however, is usually not enough to cover the potential costs of hitting another vehicle and getting it totaled. New vehicles can easily cost more than $50,000. You’ll be held responsible for repair bills in the case of an accident, so you might want to consider buying higher coverage.
Collision Coverage
This covers the expenses for repair bills for your car in an accident. The amount of coverage depends on the vehicle you insure. You must also decide on how much deductible you want to take. The premium gets lower as the amount of deductible increases.
It’s recommended to get collision coverage if your car is new and has high market value. For the same reason, it becomes less important as the car’s value decreases over time.
Comprehensive Coverage
Your car may also receive damage outside of collision, such as fire and theft. Comprehensive coverage covers the cost of these damages. You also need to decide on deductibles. This type of coverage is usually sold together with collision coverage.
Medical Expenses
This covers the medical expenses for you and the passengers in case of an accident. The Medical Expense Limit determines the maximum amount that will be paid for the costs of medical care of each passenger. This means that a $3,000 Medical Expense Limit entitles each passenger to $3,000 coverage for medical expenses.
You should now have an idea of the kinds of car insurance coverage to include in your policy. When it’s time to shop for car insurance policies, be sure to do some research as they might vary widely based on your vehicle, driving record as well as the amount of credit you have. Speaking with direct sellers and independent insurance agents should help you find the best deals to get the most value for your money.