How to Set the Right Car Insurance Coverage Limits

toy car next to jar of coins labelled car insurance, choosing the right amount of car coverage

How to Set the Right Car Insurance Coverage Limits

How to select the right amount of car insurance to meet your needs.

Almost every state in the U.S. requires its drivers to carry some minimum level of auto insurance.  However, insurance experts across the board agree that these insurance minimums are not enough coverage to protect against all your risks.  But how much auto insurance is enough?  Here’s what you need to know about choosing the right amount of car coverage.

Car insurance is designed to protect your finances in the event of an accident, particularly ones that you are at fault for.  When you only carry state insurance minimums, you have enough coverage to be considered legal, but rarely enough to address the full cost of an auto accident.  Once your car coverage runs out, you will have to pay the remaining costs out-of-pocket.  If you do not have enough money saved, then assets such as your home, retirement account, personal property, and so on could be at risk. Rather than leaving yourself vulnerable to this threat, it’s much smarter and safer to secure adequate car coverage from the start.

It’s also possible to carry too much auto insurance coverage.  While most drivers don’t consider this a problem, having too much car coverage is also a risk.  The main issue with over-insuring yourself is that you will be paying a lot more for car coverage that you probably don’t need.  Drivers with high coverage limits are also more likely to be hit with a lawsuit following an auto accident.  This is because attorneys assume that drivers with a lot of car coverage have a considerable number of assets that they need to protect.  They encourage their clients to sue in the hopes of receiving a larger payout.  To avoid these threats, it’s important that you aren’t securing more auto coverage than you actually need.

Unfortunately, there is no universal auto insurance coverage amount that drivers should be attempting to secure.  Every driver has their own risk factors and needs, which affects the amount of coverage they need.  The best way to determine your ideal coverage amount is by using a car insurance calculator tool or speaking with a trusted insurance professional.  By factoring in your risks, assets, and budget, you can find the right coverage to meet your needs.

This is what you need to consider when choosing the right amount of car coverage.  Are you looking for further assistance with your auto insurance?  If so, then contact the experts at Staybull Insurance.  We are ready to assist you with your car coverage today.

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