How Much Car Insurance is Enough ?

There are many insurance options that you can purchase.  Comprehension and collision are the two main coverages, but the most important is liability insurance.

1. Collision coverage will pay for damage to an insured auto as a result of an accident which is covered under your policy.  This could be an accident with another vehicle or an accident with a tree. If your auto is damaged in an auto accident you may not be able to afford the repairs and that’s where collision coverage comes in.  Collision also repairs the other person’s vehicle.  If you do not have adequate insurance and you are found in the wrong in an accident you could spend the rest of your life paying for damages.
   
2. Comprehensive coverage pays for damage not related to a collision. Some examples are fire, theft, glass, and vandalism to name a few.  Once again you can choose a deductible level that meets your needs.  Comprehensive insurance is good for minimizing out of pocket costs from unforeseen disasters.  If you do not carry comprehensive insurance and something occurs you would be out the value of your vehicle which could be substantial.
   At the end of the day, liability insurance is the most critical insurance.  If you are underinsured you may loose everything you own and land up paying for the rest of your life.  Even if you are lucky enough to survive the accident with minimal or no injuries the end result could devastate you entire future.  So be sure to carry enough liability insurance. 

Bodily Injury Liability Is mandatory in most states.  It provides coverage for bodily injuries that are a result of an accident you are involved in.  If you are responsible for injuring someone in an accident, you may be liable for the costs of their medical treatment, lost wages, and pain and suffering which can add up very quickly.  Bodily injury insurance covers you for these occurrences. 

The problem is the mandatory amount required is usually quite low – around $250,000 to $500,000.  Industry experts suggest the minimum coverage you have be $2 Million dollars.  That’s the average size of a claim from a serious accident.

Uninsured motorist bodily injury protects you.  Not every driver on the road covers adequate insurance even if it is the law.  If you are involved in an accident with an underinsured motorist you may need some help covering your medical costs and financial obligations.  Uninsured motorist coverage provides the coverage.

The insurance company will assist you and then go after the other driver for repayment.  Basically this insures covers you from the scenario we just talked about above.  This is excellent coverage to help protect yourself. 

Car insurance how much is enough ?  This article which is packed with information should have you rethinking if you carry adequate insurance. If you decide you do not then I would suggest taking care of it immediately.  You can Compare Insurance Rates online.   An accident could be just around the next corner.  What are you waiting for?