How Do You Know If You Have The Right Coverage For Car Insurance?

Right Coverage For Car Insurance

What the minimum amount of coverage you can get for car insurance is determined by the state that you live in plus if you own the car or are financing. This isn’t to say that you should go for the minimum, but only that you don’t always have to get the most coverage when you don’t really need it. 

Many people end up with a policy that covers them for just about everything, even things they are unlikely to need. This ends up costing more than it should. You should only be paying for the coverage you actually need. 

In this article, we will go over what to look for when choosing the best car insurance coverage that is just right for you. 

Comprehensive insurance

This is the part of the policy in which people tend to overpay. There are coverages that simply don’t apply to people or at least they are events that don’t occur often enough to warrant their inclusion. 

For instance, you could have pothole damage coverage in your policy. If you live in an area with pristine streets and smooth pavement then you are overpaying. If you live in an area where the weather is bad and the streets are often damaged from the snowplows then you probably will do well to have that kind of coverage. 

Before you add any comprehensive coverage, think about the types of scenarios you are most likely to encounter. Do you live in an area where cars are often stolen? Then theft is a good addition to have. Is there a high likelihood of hail? Then that makes sense to cover. 

Don’t cover yourself for the one in a million event, but the event that is most likely to occur. 

Liability

There are different liabilities and amounts that cover each kind when it comes to an accident in which you are at fault. The two main ones are bodily injury and property liability. 

This is when somebody is hurt in an accident whether it is you, your passenger or the other driver, or their passengers. Each state has its own minimum that needs to be covered to pay for the injuries of the other driver and their passengers. No matter what the state minimum is, it is a good idea to have a policy with $100,000 per person in bodily liability coverage. 

Property liability is any damage to the car or even to a building or property. Just as in the case of bodily liability you have to check what the minimum is in your state. It is advisable to have the same amount of property liability coverage as bodily so you are covered properly.

The problem is that if the coverage is too low, then you will be responsible for amounts over what your insurance company will spend. You should also have collision coverage so the damage done to your car in an accident even when you are at fault is paid for.