How much auto insurance is sufficient for your vehicle?


Many customers often ask a very common question. How much coverage or what insurance products should they purchase? There is no easy answer to this and it varies from one person to another. To start with, third party liability insurance is usually mandated by law in most states. Moreover, a figure is also mandated as the minimum coverage that you need to have if you own a vehicle. So, there isn’t much doubt as to what to do in case of liability insurance. However, if you own a vehicle, you definitely need other types of coverage for your own good and this is where you have to run a check on how much premium you can afford.

Auto insurance coverage ensures that you spend a small amount every quarter and walk away without worrying about major expenses that come in an unforeseen manner. Your vehicle could be damaged in hundreds of ways. It could be through natural disasters like floods and hurricanes. It could be through fire, theft or vandalism. The damage could also be caused by accidents on the road. There are times when your vehicle is parked safely and someone knocks it after losing control of their own vehicle. You need to have coverage to take care of the repair costs which could be extremely high.

It is important to note that there is no fixed limit mandated for other types of insurance. If you live in a place which is prone to natural disasters, you should go for comprehensive insurance that is within your budget and is reasonable enough to take care of the cost of most repairs. Similarly, collision and PIP or personal injury protection insurance will prove to be useful from time to time. It is a better idea to seek discounts in the rates rather than compromising on the coverage altogether.

There are many other situational insurance coverage products too. For example, you can pay a little bit extra for add-on services like roadside assistance during emergencies, towing and rental car charges during the damage estimation and repair process and round the clock hotline assistance. You can also go for gap insurance or totaled vehicle insurance, especially if you have a huge auto loan that still needs to be paid. In the situation, where the value of the car depreciates quickly or where the car has been totaled and your loan amount is still due, you will be compensated.