One of the most common questions insurance agents face from clients is, "How much car insurance do I need?" Although the question is simple, the answer is more complicated. It really depends upon the individual. Below are some suggestions to help you answer that question.
The Basics on Auto Insurance Minimums
Most states require you as a driver to maintain a minimum amount of liability coverage to protect pedestrians and other motorists in case you injure them or damage their property. In Alabama, you must buy $25,000 bodily injury liability per injured person, to a per-accident maximum of $50,000. Also required is $25,000 of property damage liability. These cover medical costs and repairs to property of other people. It does not cover damages to your vehicle or injuries to you or your passengers.
Note that these are just minimum amounts. If you own a house or have a savings account, these assets will be vulnerable if the damage you cause exceeds the amounts discussed above. With legal fees and medical costs, your out-of-pocket expenses could reach tens or even hundreds of thousands of dollars. That's why recommended liability coverage for your car insurance often features limits of 10 times the minimum required amounts. Consider how much or little you drive as well as the traffic congestion of areas where you live, work, and go to school.
Comprehensive & Collision
To protect your own vehicle, you need to purchase collision coverage—car insurance that pays for any collision damage you do to your own vehicle—as well as comprehensive coverage, which pays for non-collision losses, like fire, flood, vandalism, and theft. The amount of coverage you need varies depending on the make, model, and year of your car. The newer and more expensive it is, the more you need. If you have an outstanding car loan balance, your lender will require both of these, also called "full coverage," to protect their investment.
These are the basics, but an auto insurance agent can walk you through your unique circumstances and needs to draw up a policy that suits you perfectly.
To discuss your car insurance needs with an experienced professional, contact Aaron Insurance Agency in Dothan, AL. They've been serving clients in and around Houston County since 2000. They are an independent agency with a large network of 15 providers, from which they can help you select the best, most affordable coverage. They also specialize in boat, motorcycle, and RV insurance, so they're a one-stop solution for all your coverage needs. Visit their website to request an insurance quote or call (334) 712-0777 for invaluable advice.