Enter Your ZIP Code

Know How Much Motor Vehicle Insurance Coverage You Need


Finding a motor vehicle insurance partner is not an easy task. Most of the time, it can prove to be tricky. You will be surprised that in the United States, the amount you will pay for a car policy may differ depending on which state you live in. Your agent can probably help you and easily say that you should just buy as much as your pockets can manage. However, they will always say that when it sounds logical yet there is a better way for you to make a sound decision.

There are four questions you should ask yourself before considering that motor vehicle insurance quote:

  1. In the state you live in, what is the minimum coverage required?
  2. What is the extent of minimum coverage?
  3. Can you afford other coverage that is made available for you?
  4. What do you intend to protect with the insurance?

Find out the state minimum requirement. Discuss with your agent or research online. There are tools in the internet that can easily help you with this. The most basic required coverage across all states is Liability Coverage where a third party is compensated for injuries or death brought about by an accident you caused and does not cover you and your vehicle. Claims for injury may equate to medical bills, income lost, or pain & suffering.  This will also protect your personal assets in the event that a third party files for a lawsuit against you.

Some other types of motor vehicle insurance coverage are:

  • Comprehensive, which covers a vehicle after an accident, and damage caused by theft, flood, animals or fire;
  • Collision, which pays for damages on a vehicle no matter who or what caused it. If you own an old car, skip this because the coverage is usually just up to the cash value of a vehicle which makes this impractical; and
  • Personal injury covers you and your passenger’s hospital and medical bills.

The abovementioned are the most usual subscriptions. Other types are available, so make sure to ask about those, too. You may find that some will seem like something you might need in the future even if your state laws do not require such; if this is the case, sign-up for it as long as you can afford it. Treat motor vehicle insurance as an investment to secure your future.

Lastly, consider what assets need protecting when time comes. With liability, get comprehensive and collision if you are protecting your car. If it is your enormous net worth you are protecting, then by all means buy as much insurance as possible.