What is a good way to tell how much automobile insurance you need?
My insurance agent is always trying to sell me higher and higher limits, which of course cost more than lower limits. Most recently he recommended insurance that would cover up to $1 Million in liability per incident. Do I really need that much insurance? I been driving for decades and have never had an at fault accident.
The limits of insurance you purchase is dependent on a number of things. Lets say you purchase a policy with Bodily Injury/Property Damage Coverage of $50,000/$100,000 and Collision coverage of $50,000. This means you have $50,000 dollars coverage for any one person injured and $100,000 dollars coverage for all persons injured, and $50,000 coverage for any property damage you cause. You would be personally responsible for any injury or damage over that amount. Another consideration is Uninsured Motorist coverage. This will cover damage to your vehicle if you are hit by an uninsured driver (you don’t need to use your Collision coverage, and you won’t be penalized) If you have a lien holder on your vehicle and you owe more than the insurance value of your vehicle, you should consider Gap Coverage. This coverage pays any amount above what the insurance company pays in the event of a total loss. I believe your insurance agent is looking out for your interest. You should speak with him about the coverages, especially is you have large assets.
July 17th, 2010 at 11:19 am
If you finance your vehicle as I do, your finance company has a minimum requirement. That’s what you should follow. Anything else is a waste of time & money. Of course your ins agent wants you to have more coverage. It’s a bigger commission to him.
References :
July 17th, 2010 at 12:04 pm
The limits of insurance you purchase is dependent on a number of things. Lets say you purchase a policy with Bodily Injury/Property Damage Coverage of $50,000/$100,000 and Collision coverage of $50,000. This means you have $50,000 dollars coverage for any one person injured and $100,000 dollars coverage for all persons injured, and $50,000 coverage for any property damage you cause. You would be personally responsible for any injury or damage over that amount. Another consideration is Uninsured Motorist coverage. This will cover damage to your vehicle if you are hit by an uninsured driver (you don’t need to use your Collision coverage, and you won’t be penalized) If you have a lien holder on your vehicle and you owe more than the insurance value of your vehicle, you should consider Gap Coverage. This coverage pays any amount above what the insurance company pays in the event of a total loss. I believe your insurance agent is looking out for your interest. You should speak with him about the coverages, especially is you have large assets.
References :
insurance broker