Shop Car Insurance Quotes

Car Insurance Quotes, Articles & News


How Much Auto Insurance Coverage Do You Need?

How Much Auto Insurance Coverage Do You Need?

How Much Auto Insurance Coverage Do You Need?

If you had to take out a loan when purchasing a new vehicle, you likely had no choice but to purchase full coverage insurance. After all, the lending institution wants to make certain the loan will get paid off in full if your car were to become damaged or stolen. Once you have paid off your loan, however, you have the choice to maintain full coverage or to reduce the amount of coverage you have. Clearly, by reducing your coverage, you can save yourself quite a bit of money when it comes to your insurance premiums. Therefore, you need to take several things into consideration when determining the amount of coverage you need.

The Value of Your Car

The most important thing to consider when determining how much insurance coverage you need is the value of your car. You can easily check the current value of your car by consulting with Kelley Blue Book, a copy of which you can find at your local library. Or, go online to to do an instant search. Clearly, the higher the value of your car, the more you should consider maintaining a full coverage policy.

Your Financial Situation

After determining the value of your car, you need to consider your current financial situation. If the car is valued at $5,000 and you would have no problem absorbing that expense if your car were to be totaled, paying for full coverage insurance may not make sense for you. If $5,000 would be financially devastating to you, on the other hand, having full coverage insurance in place will provide you with comfort in knowing that you won’t have to go without a car if you are involved in an accident.

Accident Risk

While no one can predict whether or not an accident is in their future, you should be able to gauge your overall risk. If you have a long work commute or if you do a lot of driving in accident prone areas, your risk is much higher than someone who is retired or who only drives a few minutes to work. If you are of a greater risk and your car is of great enough value to make full coverage insurance worthwhile, you should put some serious thought into maintaining a full coverage policy.

6 Responses to How Much Auto Insurance Coverage Do You Need?

  1. Roderick Pegues says:

    A further important part is that if you might be a senior citizen, travel cover intended for pensioners is a thing that is crucial that you think about. The harder aged you are, greater in jeopardy you’re for getting something negative take place whilst in most foreign countries. If you’re not really covered by a few comprehensive insurance coverage, you’ll have numerous serious issues. Appreciate your revealing your guidance on this amazing site.

  2. letter of reprimand says:

    Having read this I thought it was really informative. I appreciate you spending some time and effort to put this article together. I once again find myself personally spending a significant amount of time both reading and posting comments. But so what, it was still worth it!

  3. Abby says:

    Thank you for the good writeup. It in fact was a
    amusement account it. Look advanced to more added agreeable from you!

  4. Jerri says:

    Hi, after reading this amazing post i am as well delighted to share my knowledge here with friends.

  5. Barbara says:

    I think what you published made a bunch of sense.
    But, consider this, what if you wrote a catchier post
    title? I am not saying your content is not solid.,
    but suppose you added something to maybe get folk’s attention? I mean How Much Auto Insurance Coverage Do You Need?

  6. Tera says:

    When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is
    added I get several e-mails with the same comment.