How Much Auto Insurance Do I Need?

How Much Auto Insurance Do I Need?

How Much Auto Insurance Do I Need? Auto Insurance can be divided into three major types of coverage which are; vehicle coverage, liability coverage, and medical coverage. Although you might want to carry the minimal coverage as demanded by your state regulations, you might also want to carefully evaluate your car worth including extra coverage to secure yourself, your passengers and properties from unforeseen accidents. Before you decide on the amount of coverage, you might need, ensure that you are covered for an amount equivalent to the overall amount of your properties. Also, if the vehicle you drive is rented or has a lien, it might be required for you to possess both collision and comprehensive coverage.

The coverage packages below are not peculiar coverage packages provided by carriers. Instead, they are illustrations of popular package types. This is an extensive summary of packages insurance carriers provide.

Remember, your needs and carrier determine how you mix and match coverage. Although you might consider getting a small amount of coverage for your vehicle, you might also consider getting maximum coverage for liability. Likewise, your health insurance policy might determine the choice you make when picking Personal Injury Protection (PIP).

Insurance carriers are quite flexible, and they provide a wide range of services. It is highly recommended that you speak with agents to get a full grasp of what you require and also design an insurance policy that will suit your needs well.


This is a state minimum coverage requirement. Insurance professionals recommend that you secure your properties by buying a higher amount of coverage than the minimum coverage required by the state. This is because these limits are barely able to keep up with the expenses of car repair and hospital bills which are always increasing. It is advised that you purchase more coverage. However, if your state minimum coverage is what you can bear the cost of, and if you do not have any properties or savings, it is better to settle for this coverage level.

Lower Level

You should only consider this level of insurance coverage if your car is not worth more than $10,000 and if you can bear to pay for repair from your pocket, but you require higher liability and medical coverages to secure your properties. It is recommended that you purchase at least $25,000 for Property Damage, $50,000-$100,000 for body injuries and $50,000- $100,000 for uninsured vehicle drivers.

How Much Auto Insurance Do I Need?Typical Level

This is the most purchased level of coverage. It encompasses collision and comprehensive coverages and higher amounts of liability and medical coverage. In general, buyers often purchase $50,000 worth of Property Damage, $100,000- $300,000 worth of Body injuries and $250,000- $500,000 for uninsured vehicle drivers.

Highest Level

This is the most expensive level of coverage, and it is only suitable if you have a lot of assets. Apart from the fact that it covers both collision and comprehensive coverages for car repair, it generally has the highest amount of liability and medical coverages purchasable. Basically $100,000 worth of Property Damage, $250,000- $500,000 worth of body injuries and $250,000- $500,000 for uninsured drivers.

Now that you know offers that are available, you can scout around to get a feel of how carriers differ in like coverages.

After doing this, you can draw a comparison of services, products and discount rates that are offered by different carriers. Keep in mind that carriers differ and thus, they offer varying products and auto policies. Use this to your advantage.

For instance, while some carriers provide accident forgiveness, others do not. Some carriers provide discounts while others don’t. You might be lucky to get a student discount, a military discount or even a safe-driving discount.

This helps you to look around and compare products by different carriers. In auto insurance, there is nothing like one-size-fits-all. You could also try communicating with solo agents. They are well-versed with how the insurance industry works, and they understand what services each carrier provides. An agent can fix you up with a carrier that is most suitable for you.

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