When you're purchasing auto insurance, it's important that you ask yourself some serious questions before you decide on the types and amounts of coverage you need. To help you do that, Bruce Richardson, a State Farm® Agent in Mooresville, IN, discusses some of the most important things to consider when buying car insurance. The answers you arrive at will make it easier to design a policy that meets your needs and fits your budget.

Factors to Consider When Buying Auto Insurance

State Legal Minimums

You should be aware of what your state requires as a minimum amount of coverage. For instance, Indiana is known as a 25/50/25 state because its Bureau of Motor Vehicles (BMV) requires drivers to purchase $25,000 worth of bodily injury liability per injured person to a maximum of $50,000 per accident, as well as $25,000 worth of property damage liability coverage. If your goal is to minimize your premium amount, this is the least expensive option.

Age & Value of Your Car

If your car is fairly new and costly, you will likely want to purchase full coverage auto insurance, which includes collision damage and comprehensive coverage. This reimburses you for losses due to theft or damages to your own car in addition to liability coverage should you be at fault in an accident. However, if the additional cost to buy full coverage exceeds 10% of the maximum payout you can expect—the car' Bluebook value minus your deductible—you should consider dropping full coverage.

Your Level of Risk Aversion

Lastly, consider how risk averse you are. If maximum security is more important to you than saving a few dollars, you might prefer to reduce your deductible amounts, maintain full coverage, and raise your liability limits. This provides the greatest coverage, but it costs more. However, if you are not averse to risk and reducing the premium is your goal, consider raising the deductibles, lowering your liability limits, and choosing liability only auto insurance.

To purchase high-quality auto insurance from a reputable, experienced insurance agent, contact Bruce Richardson, a trusted State Farm Agent in Mooresville, IN. A second-generation insurance professional with more than 25 years in the business, Bruce Richardson's team offers experience, expertise, and exceptional customer service. Visit their Facebook page to view the business hours and a map to their office, or call (317) 831-3500 to request a free, no-obligation insurance quote.