Insurance For Cars: How Much Is Enough?

You are required by state laws to have a certain amount of car insurance. Liability is required in most states.

How much car insurance should I buy is a thought that most of us will consider. We want enough, and the right kind to cover sufficiently however, we want to save if possible. Your insurance is a unit of different types of insurance. People usually take out enough insurance to satisfy the law¡¦s minimum requirements. Some choose to buy more than is required to cover themselves from high medical cost, repair bills and from potential lawsuits.

What about my bank?

Most lenders such as banking institutions require you to purchase insurance options such as collision and comprehensive. Collision will pay for damage to your car regardless of whose fault. Comprehensive will pay for damage caused by fire vandalism or theft.

Liability

This is required in most States, paying for bodily injury and property damage including legal bills caused to third parties. With any bodily injury, medical bills and lost wages will be paid. Property damage will pay for repair or replacement of things you have damaged. There is also the possibility of being sued for "pain and suffering."

Reading the liability limits, example 20/40/10

- The first number indicates the bodily injury liability maximum for one person's injury.

- The second number is the maximum of bodily injury liability for all injuries in an accident.

- The third number is the liability maximum for one accident in property damage.

Some States have "no fault" insurance laws, indicating that your insurance must pay for damages no matter who is the cause of the accident. This makes it easier to because at times it is very difficult to determine who is at fault in an accident. The theory is that this will speed up the claims paying process and keep insurance costs down.

Collision Coverage

This will pay for repair to your vehicle if you are the cause of an accident. You will usually collect the cash value of your automobile. Collision is the most expensive part of auto insurance. Insurance companies will total your car in most cases if the repairs are more than the vehicle is worth.

Comprehensive coverage

This will pay for damages to your car that is not caused by an auto accident. It will cover theft, vandalism, fire, and natural disasters, or running into a deer. This coverage has a deductible and payoff will be the amount your car is worth at the time of the accident.



Most insurance adjusters use the Kelly Blue Book, this is available to consumers also, and it is a good idea to have to know what your car is worth. If your car is worth less than the coverage you are paying for it, drop the insurance.

Medical Payments and PIP

If you are driving your car or someone else¡¦s car and have an accident this will pay for you and your passenger¡¦s medical expense (as long as they have given you permission) to drive their car. It will also cover you and your family in pedestrian accidents regardless of who is at fault.

PIP is injury protection is broader forms of medical payments protection. Some States allow the choice between PIP or no-fault.

Uninsured and underinsured motorist

This coverage will pay for injuries if struck by a hit and run driver or someone who has no insurance. Underinsured will pay if the driver at fault has less liability than will pay for the damage.

In conclusion, you may add on features such as rental reimbursement, towing, and so on to your policy.

Some ways to save on your insurance

- Increase your deductible. You can choose $500 or even $1000 for all components of your policy. Be sure to set enough money aside to cover these higher deductibles.

- Cut your coverage if your car is older the comprehensive and collision should be dropped after about five years. The extra premiums will cost more than the value of the automobile.

- Taking a driver¡¦s education course and installing an anti-theft device, and having air bags will lower your premiums.

- Consider buying a low-theft car, shop around for prices on premiums of different cars. The cars that are high theft risks will be higher in premiums.

© High Speed Ventures 2011