How Much Auto Insurance Coverage Do you Really Need?

Auto insurance can be confusing. Most policies look like they were written in a foreign language. Here are simple explanations for the five fundamental types of auto insurance coverage so you can decide for your self what you need and what you do not.

Collision Coverage – This pays for repairs made to your car no matter who was at fault. If you purchase or lease a auto your dealer will require you to carry this coverage.

I recommend getting the highest deductible you can afford. Growing your deductible from to will save you 10% to 20% on your insurance.

Comprehensive Coverage – This coverage pays for damages to your car from fire, theft, and vandalism. It also pays for damage from natural disasters like hailstorms and hurricanes.

You really should carry comprehensive coverage, but once more, get the highest deductible you can afford.

Liability Coverage – This coverage pays for your legal fees and any claims made against you if your vehicle kills or injures an individual, or damages a person else’s property.

If you don’t have a lot of assets you can go with the minimum your state requires. Nevertheless, if you do have a lot of assets you need to get the highest quantity you really feel will safeguard you from lawsuits.

Uninsured Motorist Coverage – This coverage pays for damages accomplished to you, your passengers, and your automobile that are caused by uninsured or underinsured drivers and hit-and-run drivers.

With much more than 15% of the population driving with out insurance, and hit-and-run accidents on the rise, this is very good coverage to have, specially if you live in states that have a high number of uninsured drivers like Mississippi (26%), Alabama (25%), California (25%), New Mexico (24%), and Arizona (22%).

Medical Coverage – This coverage, also recognized as personal injury protection, pays your medical expenses and your passenger’s medical expenses if you’re involved in an automobile accident.

Take into account eliminating this coverage if you already have medical insurance that covers you.

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