How Much Car Insurance Do I Need?
The amount of auto insurance needed by a given motorist differs and comes down to a few different factors. First and foremost, all who intend to occupy the roadways must have enough coverage to satisfy whatever law their particular state requires. Any additional protection above and beyond what is legally needed would be considered optional and the necessity is dependent on a particular individual's needs.
Determining How Much Auto Insurance is Needed
With every state having their own laws in place in regards to the amount coverage that is needed in order to operate vehicles legally, the first step to determining how much coverage is needed is to understand what an individual's legal responsibilities are. Some state's requirements are extensive and some require only basic liability, one should be sure to fully understand their state laws.
Once an individual understands their legal responsibility, they can go ahead and take the time to determine what additional options may benefit them and compare quotes to see what can fit in their budget. A very common add-on is comprehensive and collision. This covers physical damage that is caused to a policyholder's vehicle minus a deductible. It is extremely wise to consider this if one is financing a vehicle and most financial institutions will require this as part of the loan agreement.
In some states Uninsured Motorist is mandated by law, but if a particular individual is not required to carry this additional protection it may be wise to take into consideration when shopping around. This will cover the insured if they are hit by a driver who does not carry a policy, is underinsured or if victim of a hit-and-run. This can be beneficial due to the unfortunate amount of motorists who choose to drive illegally without policies.
There are several different [types of coverage] and while some may be beneficial to certain individuals it may not be for others. Consumers should make sure they understand their options as well as what is needed for their particular situation. Making an uneducated decision when purchasing a policy can lead to overpaying for coverage or not being properly protected and underinsured.