No one wants to dwell thinking about untoward events such as car accidents however we all know life’s uncertainties. Anything can happen without a warning thus it is prudent to be prepared for anything that can come your way while driving.
Now there are just so many types of auto insurance coverage that consumers can choose from. However having a lot in the market seemed to make people a little bit of confused on what to get and how much coverage do they really need.
Almost all states have laws about the minimum requirement for drivers when it comes to auto insurance and this is the first thing that has to be considered when shopping for auto insurance coverage. Knowing what the state is expecting you to have when you ride your car will definitely save you from being underinsured.
The minimum coverage set forth by the state laws is generally low thus this should not be the only type of coverage one should be getting. Auto insurance is primarily designed to give proper protection and the kind of protection you need might not be satisfied with just the minimum requirement of the states.
This is the time when you assess what you really need. Liability coverage is the minimum requirement for most states. This type of coverage makes sure that you can pay for whatever damage or injuries you will cause other parties. Typical policy covers $100,000 per individual and $50,000 for the property damages. Depending on your financial strength you can get as much Liability coverage as you want.
Another thing that you have to consider in deciding how much coverage to get is the car you are driving. There are some types of policies that are not highly applicable with some cars. For instance the Collision coverage may not be necessary if you are driving old cars. This time you have to know your car’s worth at present to help you decide whether to get Collision coverage or not.
Car’s value depreciates really fast and you might be surprised with the current worth of your old ride. You can opt not to get Collision coverage when the car you drive is worth $1000. This can also be true with another type of coverage called Comprehensive. Once your car is totaled its current value would be the amount you will get. Do some math and determine whether the amount you pay for your Comprehensive coverage is far more expensive than the value of your car. If that is the case you can choose not to get Comprehensive coverage.
