- October 29, 2018
- By James Nick
- In Blog
There are many of us out there today that spend a huge chunk of our time pondering upon things like your health insurance or your life insurance, making them forget about their auto insurance.
What’s going to happen when you’re young teen accidentally hits the pavement while making a sharp turn? Or what if your wife forgets to put the car in parking mode, rolling it into your neighbor’s new convertible? We bet you haven’t thought about that.
No matter what vehicle you may be driving, getting car insurance is so important for so many reasons. But the real question worth asking yourself is how much car insurance do you actually need? And to help you find out, we’ve outlined the expert guide into answering just that.
Car insurance is based on various types of coverage
In order for any common individual to understand how much car insurance they really need, getting your facts sorted from the beginning will make all the difference. Car insurance comes in various forms that include body injury liability, property damage liability, uninsured motorist, collision, and comprehensive damage, personal injury and protection/medical payments amongst many others. Below, we’ll explain to you which types are super essential and just how much you really need.
How much of liability car insurance is actually enough?
Being termed a mandatory form of insurance, the amount considered as sufficient should equalize your net worth. This can be calculated by summing up all your assets and deducting your debts. In case your net worth is below the minimum required by state officials, opting for the minimum is a good idea.
The amount of uninsured motorist insurance you really need
More than half of the states require uninsured motorist insurance. The probability of getting into accidents with uninsured drivers is low, but it can happen. This coverage is termed inexpensive so getting it is a good idea. Citizens who have a collision, as well as comprehensive or personal injury coverage, may opt out of this insurance type.
Are collision and comprehensive insurance necessary to obtain?
Both the aforementioned insurances are termed optional for each state. However, every driver should have them present on the policy, especially those whose car’s value is $2000 and above.
Should you purchase personal injury protection or medical payment insurance?
Citizens coming from states that do not make either of the two types of coverage mandatory can opt out. But this is only when you have sufficient health insurance to cover up your vehicle accidents.
Is it ok to simply obtain the state’s minimum auto insurance?
The only reason a citizen should buy their state’s minimum auto insurance is when the following conditions apply:
1. Your number of assets is low
2. Your vehicle’s value is low
3. Your health insurance covers for any vehicle accidents