Shopping for car insurance can be a tricky business so a lot of people usually just go with what the insurance agent recommends. But since everyone is different it sometimes it pays off to know just how much car insurance you need. There are some simple ways of finding out what the right amount of coverage is for you.
How much driving is done on average? Do you spend a lot of time behind the wheel? If you drive a lot, chances are you need more coverage than someone who is only an occasional driver. Accidents can happen to anyone regardless of how much they drive but if you drive more, your risk is greater.
People who have a lot of assets may want to consider more coverage. If you have a lot of money in the bank, you should make sure you have the additional protection to shield your assets.
Is your car an expensive model? Expensive cars can also be very expensive to repair and replace so they need a lot of coverage. If you have an expensive car and not enough coverage in place, you may have to pay out of pocket for expenses that go above and beyond the policy limits of the cars insurance.
Are you what would be considered a safe driver, or do you frequently get into accidents? Drivers who are prone to getting into accidents should think about increasing their coverage. It’s just common sense that if you’re a person with a history of getting into accidents, you should have greater coverage because you are more likely to get into another accident. The greater coverage will cover property damage and personal injury claims.
Every state has a mandatory minimum coverage that you must carry on each of your vehicles. Before you decide on how much insurance coverage you need, make sure it is at least enough to meet your states requirements. Check with your insurance agent to make sure you are compliant.