How Much Auto Coverage Do I Need?

You might have just bought your shiny new automobile, and are now searching for the best auto insurance available. However, you must know that cheap doesn’t necessarily mean good – what you should be looking for should be the auto insurance package that fits your needs.

Every single driver has different coverage needs, budgets, and options available to them. This means that there’s really not one single answer that could possibly answer this question for everybody. To really know and understand how much auto insurance coverage you need, you must analyze your current situation, weigh your options, and then make an educated decision. Only make a decision after you have done your homework on the coverage that you actually need.

How Much Auto Coverage Do You Need

How Much Auto Insurance Coverage Do You Need?

Again, everybody has different needs when it comes to auto insurance. In order to get the most cost-effective coverage available you must know exactly what you need, what you can afford, and answers to many other specific questions that only you can answer.

It’s important that you determine your coverage needs before ever obtaining a quote. Once all the many great auto insurance deals are put in front of you. After you’ve entered your zip code above, it may be hard to make an unbiased decision when all the quotes are tempting you in each direction. To avoid confusion, find out your auto insurance needs beforehand.

List The Coverage You Have, Want, And Need

Firstly, you should make a list of the insurance coverages that you already have. Do you already have personal comprehensive health insurance or any other forms of insurance? Take note of the coverage that these insurances offer, and make sure you do not take duplicate coverage when buying your auto insurance.

This is the first step that you must take before you even go online to hunt for a good quote. Know what you need first before searching for the insurance package that offers the best price. Without going through this step, you might be tempted to pick up the cheapest offer there is without going through the coverage included in the auto insurance, and possibly waste good money.

Considerations For Older Vehicles

The cost of maintaining older vehicles are rising. Aside from the higher probability of breakdowns, less efficient safety features and the higher repair costs, it is also noted that older vehicles are easier to steal. If you own an older car you probably don’t want to have more coverage on it than your new car. The reason for this being that older cars cost less money to repair and are worth much less.  You might even consider dropping collision coverage on your old car.

A study pertaining to this issue has been published – according to this study, cars that are more than 20 years old are most vulnerable to theft, followed by those between 14 to 20 years old. As such, you must know that liability insurance is just not enough anymore – you might want to get comprehensive coverage to cover any potential monetary losses from car thefts.

To determine whether you need comprehensive coverage, ask yourself this: will you be trouble financially if you are required to replace your stolen vehicle? If you say “yes” to this, you will be fine just purchasing the basic liability coverage. However, for those of you with less financial security, it will be a good idea to include comprehensive coverage in your auto insurance package.

Indeed, many older car owners underestimate the actual worth of their vehicle and will have to pay the price when they’re required to replace their vehicle.

Things To Think About In Regards To Family Coverage

Don’t forget to insure others in your family! Anyone who lives under the same roof as you is eligible to be part of your family plan.  Also, remember to ask for discounts for insuring multiple cars. Combining policies with your family members is a great way to get discounts.

Don’t forget that there are many different kinds of auto insurance coverage, which you can read up on right here on Most people only need state required insurance (liability coverage), but others will have special needs that require other forms of auto insurance.

There’s no reason not to lump your entire family under one auto insurance scheme – when more people are covered under one policy, you will be able to enjoy more discounts to your auto insurance’s insurance coverage

If your family has more than one vehicle, you can get more discounts just by adding vehicles to your insurance policy. Also, the owner of the other vehicle will not be required to go through the administrative jargon and procedures again just to obtain his auto insurance. In addition, as you include more vehicles under your auto insurance policy, all of the owners will stand to gain through even more discounts on their premiums.

Next, you might also want to transfer your homeowner’s insurance to the insurer of your car. By doing so, you will get further discounts, as your homeowner’s insurance premiums. With the combined discounts on both your auto insurance and your homeowner’s insurance premiums, there’s no reason why not to do this.

There are many more policies that you can combine with your auto insurance to create benefits for you and your family. To find out more information on this, you can visit the various informative articles found here at

How Much Of A Deductible Do I Need?

Another thing you have to take note of when buying auto insurance is the deductibles. The auto insurance will not simply pay off all the damages that were incurred in a hypothetical accident; you will have to pay your share of the damage as well. Therefore, you will have to state your deductibles up front.

A deductible is the amount of money you will be required to pay in the case you need to file a claim. This is the only money you have to pay besides your premium. In other words, deductibles are the part of your auto insurance package that you will be responsible for paying. For example, if you have incurred $3,000 in damages in an accident, and your deductible is $1,000, you will be required to fork out $1,000 while your insurer pays the additional $2,000.

Decide how much you will be willing to pay, and the frequency that you will make the claim when determining the amount of deductible you will agree on. The premiums decreases as the deductibles increases, so do take note of that as well.

To keep auto insurance premiums at a minimum, it’s best to choose the highest deductible you can afford. But don’t set it too high. If you can’t afford to pay your deductible when the time comes, you may be in trouble.

Learn more about choosing your deductible limits here.

Choosing An Automobile Insurance Policy With The Right Coverage

Once you are properly prepared to choose an auto insurance company, it is time to check out some quotes. All you need to do is enter your zip code above to get started. After answering a few short questions on our 3-page questionnaire you will be presented with quotes from a wide variety of insurance companies based on your needs and specifications. As we will present you with the top insurance quotes for the top providers, there’s a good chance you’ll get connected with a policy you like and the coverage you need.

Additional Resources To Look At

  • Dave Ramsey – How Much Auto Insurance Do You Really Need?
  • The Wall Street Journal – How Much Car Insurance Do You Need?
  • Edmunds – Auto insurance: Laws Require Minimum Coverage, But Do You Need More?

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