How Much is Insurance for a Car?
Buying car insurance can be a confusing and stressful process. As a consumer, it’s essential that you understand the different policies available and know how much car insurance coverage you need. So, how much insurance for a car should you get?
Before considering any additional insurance coverage, you should understand the minimum requirements in your state. Car insurance laws vary by state and are meant to ensure the minimum coverage of bodily injury and property damage. Increasing coverage beyond the minimum may be needed, depending on your circumstances.
Types of Coverage
Be sure to ask your insurance carrier about different types of coverage that might be of value to you. Here are some of the most common types of car insurance coverage:
- Liability Coverage – This can help pay for damage done to other vehicles or property due to an accident you caused, as well as the medical expenses for any occupants in the other car that may be injured. In California, the minimum is (15/30/5) $15,000 for bodily injury per person. $30.000 bodily injury per accident, and $5,000 property damage per accident. Most other states’ minimums are higher. I recommend a minimum of 100/300/50 (not much higher premium) with Uninsured/Underinsured Motorist Coverage (very cheap premium).
- Uninsured/Underinsured Motorist Coverage – This is important, as it kicks in if the other party involved in an accident doesn’t have insurance or doesn’t have enough to cover the damages. As I said, this is very cheap.
- Collision Coverage – This can help cover the cost of any damage done to your vehicle due to an accident with another car or an object.
- Comprehensive Coverage – This can help cover the cost of damage to your vehicle due to other instances, such as theft, fire, or vandalism. That includes catalytic converter theft.
Factors That Affect Your Quote
Your car insurance quote can be affected by many factors, such as your age, marital status, make and model of car, driving history, and credit score. Other factors, such as the type of policy and deductibles, also affect how much your premiums will be.
Deductibles are the amount you must pay from an insurance claim before receiving the proceeds from the insurance company. The higher your deductible, the lower your premiums will be. But remember, when a claim event does happen, you’ll need to pay the deductible before the company steps in.
Buying car insurance is an important decision. Make sure to research and shop around for insurance policies that offer your needed coverage. The amount of insurance you should get also depends on your personal circumstances, so it’s best to speak with a professional to ensure you get the right car coverage.