How Much Car Insurance Do I Need? [A mini guide]

How to estimate car insurance

Are you a car owner and wondering How Much Car Insurance Do I Need? Well, that’s a common query for most of car owners to search answer for.

In the USA, car insurance plans and coverage will be different for different states. Every state will have different car insurance coverage requirements. So, you can estimate the car insurance that you need depending on the state requirements, your budget, and your coverage requirements Let’s scroll down to know the estimation of car insurance in a detailed manner:

How to estimate car insurance?

No doubt, Car insurance is crucial as it helps in protecting you, family members, and others. In case of any accident or mis-happening, the right coverage of insurance will take care of the property or bodily injury costs. Also, car insurance can save you from the financial burden by covering the damages caused by an accident.

Once you know the importance of car insurance, the next big question is –How can I estimate the car insurance?

Well, the minimum amount of car insurance depends on several factors. This includes the value of your car, how much you can afford on the insurance policy and the state in which you live.

Apart from this, you’ll find different types of insurance for cars that you may need to protect yourself financially. Insurance experts recommend a minimum of $300,000 for bodily injury and for property damage insurance $100,000. Whatever you exact requirements are, you can buy insurance according to it.

Let’s discuss how much car insurance do I need in the next section.

How much car insurance do I need?

Let’s check out these pointers that will help you decide how much car insurance is needed by you:

Car insurance is required in your state

If we are talking about minimum car insurance, there are only two states that don’t require a minimum amount of car insurance. These are Virginia and New Hampshire. Except for these two states, all states need at least some minimum amount of liability coverage. In some states, you might have to acquire personal injury protection while some other states require uninsured/underinsured motorist (UM/UIM) coverage.

So, depending on the above criteria you can choose the car insurance. However, it is always recommended to get insurance that you can afford along with the minimum requirement of the state.

Liability coverage

Liability insurance is an better and cheaper option for those who’re low-income drivers. If someone is restricted by budget but needs car insurance can go for liability coverage. This will cover the costs of property damage, accident, or injury to someone. It can cover the bills and settlement costs depending on the policy limits. If someone is driving your car and causes an accident, your liability insurance will pay for damages.

As per the insurance experts, you must buy liability coverage as much as you can afford. Insurance experts recommend liability coverage of at least $100,000 per accident and approximately $300,000 for bodily injury liability. If you’re able then you should also increase this coverage limit.

Personal injury protection

Another crucial type of insurance is the Personal injury protection for covering the expenses of the driver or the passengers. Regardless of the main culprit of the accident, you and your passenger will get the medical expenses under this medical cover. This is mainly a no-fault coverage that might be needed by your state.

How much collision car insurance coverage I require?

One of the most common queries of car owners is about the Collision coverage. They always keep wondering about- how much collision car insurance coverage is needed. In this coverage, you’ll get the expenses for repairs regardless of who caused the accident.

With Collision coverage, you will be able to pay to damage or replacement of up to its actual value. As per the insurance experts, you must get this insurance for any damage of the car. You can decide the collision car insurance coverage depending on the actual car value and how much you can afford.

Many car insurance companies also provide extra coverage options along with the standard car insurance coverage. You can choose the insurance plan as per your requirements and budget.

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Car owners always wonder-How much car insurance do I need? Well, as mentioned above, car insurance will depend on many factors such as your age, the car’s value and the model of your car. Apart from this, the state in which you’re living also matters a lot in deciding the car insurance that you will need. In this blog, you’ll find out how much car insurance you will need and what coverage you can choose.

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