While dropping car auto insurance altogether is not an option, the real question is how much do you really need? It can be dangerous driving around the roads under-insured or leaving your vehicle in an unsafe neighborhood without feasible protection. At the same time, having all of the bells and whistles can cost you an arm and a leg. So where is the happy medium?
Each state is different as is each insurance company you look into. There are a plethora of variables that go into determining what your premium will be including how old you are, your occupation, where you live, what your driving record is and even whether you are a male or female.
All states require at least liability coverage with some asking for as little as $15,000 per person, $30,000 per accident and $5000 for property damage. About half of the states require you to have at least $25,000 per person with $50,000 per accident and $10,000 in property damage.
The question you have to ask yourself is how much of a risk are you on the roads? If you hit a $100,000 BMW, that $10,000 property damage insurance isn’t going to do you much. You may then want to consider going above the minimum to cover yourself for the unexpected.
It is also known that the more assets and income you have the more insurance you should have as well. Most insurance companies will go as far as saying you should get car auto insurance liability coverage of at least $100,000 per person, $300,000 per accident and $50,000 property damage. Others recommend also getting a $1 million personal liability umbrella policy issued.
What you will quickly learn is that there are a lot of options out there and no best solution for everyone. Each individual has to look at the options available on a single basis to determine what suits you and your needs best.
Not everyone has the money to pay hundreds of dollars for car insurance. But it sure is nice having the comfort of mind that if you were to get into a major accident, the good guys have your back to get you out of the hard times.
Many surveys suggest that you can expect to pay anywhere from $500 to $2000 a year for the same coverage from different companies. This is what makes it crucial you take the time to shop around and price compare. Upon contacting several different companies, you will then have a better idea of what you are looking at in terms of price compared to plans. And from there you can decide just how much car auto insurance you really need.