How Much Vehicle Insurance Coverage Should I Carry?

Car insurance is a legal requirement in all fifty states in America, and many consumers have questions about what the minimum and the advised amounts of car insurance coverage are needed. All states have a minimum required amount of property and personal injury auto insurance that you must have to drive your vehicle, and this minimum amount will vary by state. It is a good idea to find out what the minimum requirement is for car insurance in your state, and this can be done by asking any car insurance agent where you live or work.

Purchasing just the minimum amount of auto insurance can leave you with coverage gaps, and in most states this can result in a huge loss or debt for you. Unless you live in one of the no fault car insurance states, you may be responsible for any liability over your auto insurance coverage. This means that if you have an accident and cause two hundred thousand dollars of damage to personal property, and your auto insurance policy only covers fifty thousand, you can end up being sued and having a judgment entered against you for the balance, after your car insurance pays your coverage limit. If you live in a no fault state there are limits and restrictions on what can be claimed from the other driver, and your insurance company handles all your claims instead, except for a mini tort claim which usually covers your deductible if you were not the at fault party.

Most Americans puzzle and ponder over the exact amount of car insurance coverage to have, wanting to be completely protected if something happens, but wanting to cut costs at the same time. Online auto insurance quotes can help with this dilemma, showing you ways to get the most coverage possible from your car insurance policy at the lowest possible prices. You simply enter your information into the simple online form, and in no time many different auto insurance companies are sending you free car insurance quotes to show you their prices and coverage levels. Comparison shopping for your next auto insurance policy using car insurance quotes can help you save hundreds of dollars every year, sometimes even more. There is no need to pay the highest prices for the auto insurance which will cover you and give you the peace of mind you deserve.

So exactly how much auto insurance coverage should you have? This can be tricky, depending on what you want covered, your state minimums, any optional coverage you choose, such as rental car, and other variables. First consider the replacement cost of your vehicle, and what the Blue Book value is. Consider your weekly salary, rental car costs, the minimum requirements for your state, and whether you live in a no fault state. You should purchase enough car insurance to guarantee that all the costs of an accident or injury will be covered, except for the initial deductible on the claim. Having a higher deductible can help you find cheap auto insurance rates, and you can generally recover your deductible from the other party if they are at fault.