Just How Much Car Insurance is Required?
Finding a good reputable car insurance company is just the beginning. Then comes the sometimes confusing stage of deciding how much coverage is actually necessary. This is something that should be considered in detail before any policy is signed. Here are a few tips to help make that difficult decision when the time comes.
State Requirements: There is a bottom line in most states for insurance that any driver must legally hold. In other words, there is a minimum level of coverage that is literally required by law in 13550, NY. It is usually stated in minimum dollars of insurance per type of coverage, like $20,000 for bodily injury, $40,000 for the accident itself, and $15,000 for property damage. The prices today tend to be much higher, especially in the case of car repair and medical costs, so it is prudent to purchase coverage well above the state minimum.
Driving Requirements: How much the car will be driven, as well as where it will be driven are both important concerns to consider before purchasing coverage. Drivers, who take long trips, often are statistically more likely to be in an accident than someone who just drives to and from work or to the store every so often. This should be a factor when thinking about coverage. The value of the car should also be a factor. Comprehensive levels of coverage, like collision insurance, should be dropped altogether for cars that are older and have little value. It is simply not worth the return, to pay a large premium every month to cover a car that is only worth a few hundred dollars. After the deductible is taken off, there may literally be nothing left for the insurance company to pay.
Be Completely Honest: No one can know what's going to happen in the future, so past experience is very important in the world of car insurance. Inexperienced drivers or drivers with a poor driving record should not try to cut corners when it comes to car insurance. Insurance isn't just about covering the driver of the car; it's about covering anyone else involved in the event of an accident. Being honest will be better for everyone in the long run when taking out a policy.
Money Requirements: While cutting corners should be avoided in order to get the best insurance possible for each particular driver, there is no reason to stray from a strict budget. There is no need to take policy options that are unnecessary just to have everything. Every driver has different requirements and should take the policy that suits them best.