04 Mar How Much Auto Insurance Do I Need?
Effort to cut auto insurance coverage is trending these days. In fact, many insurance experts believe it’s a smart way to save money. Of course, it is.
This is unarguable as the tight economy has made it vita that everyone should think that way.
So, to be on the safe side, almost everyone is now asking; “How much auto insurance do I really need?”
This is an open-ended question as we can’t say specifically that this is the exact amount of auto insurance you will as they are many factors that influence your auto insurance rate, especially if you are resident in the United States.
But if you take a case to scrap your insurance coverage down, it increases your chances of losing out big time in the event of an accident. That goes to show that you even bound to save more money by paying for full coverage.
What that means is that the amount of liability coverage you need varies by state. While some states require you buy coverage for the potential medical expenses of passengers in the form of Personal Injury Protection (PIP) coverage, others don’t.
Because these two states, New Hampshire and Wisconsin do not enforce higher limits does not mean you should not carry them.
Many have asked if they will still need Bodily Injury Coverage even after attaching their assets in a settlement. The answer is, Yes! Most companies recommend limits of $100,000 per person and $300,000 per accident.
Come to think of it, what will life look like for you to be injured in an accident with an underinsured or uninsured driver? Can you afford to miss months of work without any compensation for your lost salaries and injuries?
ALSO READ: The Top 5 Ways to Save Money on Your Auto Insurance
A combination of PIP, Medical Payments and Uninsured/Underinsured motorist coverage will ensure you are not left holding the bag should you be seriously injured.
If you are considering cutting your car insurance expenses, collision and comprehensive are the best targets. But you also need to know that you cannot cut coverage if you leased out your car or if it was bought on a loan.
But if the car is all yours, you can tuck away enough money to cover the total loss value of your car in the bank. You’ll earn interest on the money and have what you need if there is an accident. Whether it will cost more for insurance or a total loss claim will depend on your car.