What Car Insurance Coverage Limits Do You Need? Important Facts You Should Know

How much you pay for car insurance depends in large part on where you live. States like New Jersey and Louisiana are the most expensive. You’re likely to get a better deal on new car insurance if you live in Idaho or Iowa.

While location matters, so does the car insurance coverage limits you choose. Most states have a mandatory minimum. You’ll want to buy more than the minimum if you can afford it.

It’s not as confusing as it sounds. Keep reading to find out everything you should know about selecting insurance coverage limits for your vehicle.

Minimum Car Insurance Coverage Near Me

First things first: Some drivers feel tempted to ask, “Why do I need car insurance coverage near me? Why can’t I just go without?”

It’s illegal, for one thing. If you aren’t financially capable of getting car insurance, then you should reconsider driving at all.

That may sound extreme, but imagine how you would feel if you got hit by an uninsured motorist. You’d be angry and frustrated, most likely. Don’t shirk your responsibility on the road.

Before you develop your budget, look up your state’s minimum car insurance requirements. In most states, you need at least two kinds of liability insurance: body injury liability and property damage liability.

What do those terms mean? Bodily injury liability works on both a per person and per accident basis. Property damage is on a per accident basis.

Let’s say you live in Colorado. You might see your state’s minimum insurance requirements displayed as follows: 25/50/15.

So if you cause an accident and it’s your fault, the people injured can get up to $25,000 per person, for a max of $50,000 per accident. So if there are two people in the other car, they could get up to $25,000 each. 

But let’s say you also damaged some property that’s not yours. The 15 means you’re covered for up to $15,000 in property liability damage.

Considering Insurance Coverage Limits

Some people are content getting only the minimum required insurance in their state. Yet there are also good reasons to consider going over the minimum.

Insurance coverage limits mean that you won’t be covered for anything above the listed policy max. If someone sues you for $100,000 and your insurance only covers $50,000, you could be on the hook for the other $50,000.

You may think you do everything right. You avoid talking to Siri or texting when you’re driving. But it only takes one half-second of inattention for you to cause an accident.

If you can afford it, get a little more than the minimum. You should also consider other types of coverage, including collision insurance.

Collision insurance means you’re covered if your car gets damaged, regardless of fault. Comprehensive insurance covers your vehicle in case of things like a fire or flood. 

Finding New Car Insurance

Finding new car insurance doesn’t have to be a burden. Do some research and understand state laws. And make sure to search for car insurance rates on the Internet.

Getting car insurance online is just one way that technology can improve your quality of life.