How much insurance coverage do I need?

Ideally, your car insurance coverage should somehow be equal to the value of your assets or in this case, your car. However, if you are just looking for the minimal coverage each state or country requires a minimum amount of car insurance for every car owner. This minimum insurance coverage will depend on the policy of each state. Many car owners on the other hand prefer to get a policy that is beyond the state requirement. There are a lot of advantages that this can provide. Most of the time, your insurance policy will consist of a Bodily Injury Liability and a Property Damage Liability. This package is often represented by numbers like 100/300/50. The first number indicates how much will a single person be covered for in case of accidents. 100 indicate an amount of $100,000. The second number represents the total coverage of passengers in the other car if you are at fault. The third number is coverage for your car repair. Each country or state will usually require a minimal amount of insurance package like a 20/50/10 for example.

There are a lot of insurance policies that you can choose from. However, if you like to be keen and to be sure, a comprehensive policy would be ideal. It covers all expenses in case of accidents whether you are at fault or not and it also gives an additional coverage for cars that are stolen or was damaged outside of an accident. The amount of insurance coverage that you need will usually depend on the state’s minimal requirement and your personal preference. Remember that if the incurred damage is beyond your chosen policy then you will be required to shoulder the excess. So, if you want to make sure, get a coverage that will fit best for you. You can ask an independent agent to help you choose the right insurance as well as give you a variety of choices of what auto insurance company to choose.