Car-Insurance-CoverageCar Insurance is one of those things in life that most of us, like taxes, are obligated to pay for. After all, automobile insurance is the law in every state. If you drive a motorized vehicle, you need to get car insurance coverage.

While many people focus on the cheapest rates, which is, of course, necessary, you also need to focus on the coverage itself. It is super risky to be underinsured with a policy that has holes in it. It’s also bad to buy too much coverage and end up with an expensive policy that you not only need but can’t afford.

If you have assets to protect such as property, stocks, and a sizeable bank account, then you need the proper automobile coverage amounts. So in the event you are in an at-fault accident, your insurance will cover you. One of the most important decisions, you will make when buying car insurance is the amount of coverage to get. For most people, the state minimum amounts are inadequate and can put your assets in jeopardy.

Choosing Coverage Amounts

Many states have ins laws that require coverage starting at just $15,000 for liability per person, $30,000 for each accident and just $5,000 for property damage. Other states have higher minimums of $25,000 of liability per person and $50,000 for each collision.

Some states have liability ins minimums of just $10,000, which will barely pay for the replacement cost of a 15-year-old used truck. Unless you are on a super tight budget, get much more than your states minimum. Think about it like this. Let’s say you hit a new Jaguar after you went drifting into the wrong lane because of a stupid texting distraction and cause $65,000 in damages.

Well if you buy only $20,000 in coverage, guess what, you will be getting a call from a lawyer and probably slapped with a major lawsuit. On the other hand, if you had $75,000 in coverage, your insurer would foot the bill, and you would have a lot less stress.

In general, the more assets and money you earn, the more vehicle coverage you need to protect everything you have worked so hard for. Many insurance agents and financial advisors recommend getting $100,000 of liability coverage per person and at least $300,000 for each accident besides to $50,000 in property damage.

Keep in mind though that these are amounts for people with assets that need protection. If you are a starving student that only drives a few miles weekly, then you can stick with extremely lower amounts and maybe even receive by with your state’s minimums.

On the other hand, if you have assets over $1,000,000 or more, you might want to consider taking a personal liability umbrella policy of $1 million or more. You can bundle this into your home insurance coverage and it typically only costs about an additional $275 annually. That is a small amount to pay when you consider the possibility of getting sued for millions.

Car Insurance Coverage Discounts

A smart way to get higher coverage amounts combined with rates that fit your budget is to get all the discounts you can. This way you can have the best of both worlds: a cheap rate with adequate coverage. Here are a few of the most common discounts that you should take advantage of.

1. Bundled coverage.
If you have both an automobile and home or condo, then bundle your policies with one insurer and save up to 20%.
2. Multi-Car policy.
If you have two or more vehicles, then get a multi-car quote and save between 5% and 10%. You can preserve the most by bundling all your automobiles and home together onto one policy. Bundling home and car not only save you a lot of money but is so much more convenient.
3. Good driver rewards.
If you are a good driver with no tickets and no at-fault accidents, you can get safe driver discounts of up to 10%.
4. Good student.
Students who excel in school with a B or higher GPA can get discounts of 5% or more.
5. Advanced Vehicle Safety Systems.
If your car has surround airbags, anti-lock brakes and a GPS monitored theft device installed, you can qualify for instant discounts
of around 5% or more.

Shop online for the Cheapest Car Insurance Coverage

To get the best car insurance coverage rates and find exclusive discounts, start your car insurance search online. In just five minutes or less, you can compare multiple rates from premier insurers, who are all fighting for your business. Get started now with your free online rate quote. Find the best coverage you need for you and your families protection, at the best rates available.