Cheap Car Insurance Quote

How much car insurance should you buy? More than likely, your insurance agent is going to say as much as you can afford, which actually is not a bad answer. Unfortunately, it still sort of leaves you wondering what to do.

To really figure this out, you need to understand a few things. One, you need to know what your state requirements are. Also, you need to know what this minimum cost? Exactly what is covered by this minimum? Finally, you need to consider what you are protecting.

You can look on your state’s insurance website and see what their minimums are. In order to really understand what that’s all about, however, you need to know a little vocabulary about insurance. Let’s look at some coverage definitions, so you can intelligently consider what’s best for you.

• Bodily Injury Liability covers other people’s death and bodily injury when the accident is your fault. It also provides for legal defense in case you’re sued. Best case you want enough insurance to cover any judgments without you losing your personal assets. Bodily injury does not cover you or other occupants of your car from an accident.
• Comprehensive Coverage covers your car and sometimes the other car in the event of a wreck. Comprehensive covers your car in the event of theft. To keep your payments low, get a high deductible, if you feel like you can afford to pay these expenses out of pocket.
• Collision covers your car in the event you’re in an accident. If you’re driving an older car, you might want to consider dropping this coverage since your car is not worth that much and the collision is usually limited to the cash value of your car.
• Medical Payments cover medical expenses for you and passengers in the event of an accident.
• Uninsured Bodily Injury covers you and your passengers when the driver that hits you has no insurance.
• Property Damage Liability covers you if your car damages someone else’s property.
• Rental Car Reimbursement covers your rental when you car is being repaired because of an accident.

One thing you really want to think about his do you have other assets to protect. If you have a fair amount of wealth, then that’s something for someone to go after in the event you have an accident involving them. You’ll either want to get your personal property out of your name and into a trust, or just carry a ton of insurance.

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