With the excitement of buying your first car comes a bunch of additional paperwork and costs you didn’t want to think about—car insurance is one of them.
As you browse through the options different insurers are offering, you’ll find
yourself asking:
“How much car insurance do I really need?”
The quick answer to this is that you NEED the minimum amount your state
requires you to have. That being said, minimum car insurance may not cover all
your needs in an accident.
Are you really willing to risk your life to save money, or would you rather find a
policy that provides adequate coverage with affordable premiums?
You need to find a policy that provides the following:
· Up to $100,000 to cover the cost of medical bills of those you may injure in an accident
· A $300,000 cap per accident to cover all costs you may incur
· $100,000 to cover any property damage and repairs for other
drivers
Why Minimum Levels of Liability Are Not Recommended
Although it’s tempting to go for the most affordable auto insurance policy, it’s not useful. When you’re paying for car insurance, you should be able to rely on it in your time of need.
You’ll be happy paying low monthly premiums, but in case of an accident, you’ll regret not having a better auto insurance policy.
Minimum liability insurance only makes sense when you can’t afford to pay any more money, and you don’t have any assets that can be taken from you if you’re in an accident.
If you don’t have savings or any valuable assets, you become “judgment proof”,
meaning if you lose after a plaintiff decides to take you to court, they can’t take anything from you because you don’t have assets.
Experts Advice on Auto Insurance Coverage Recommendations
Experts have developed three liability insurance levels that car owners can use as a reference when buying auto insurance.
The levels are split into three numbers.
The first and second are for bodily injury liability. This pays for the hospitalization bills of anyone who is injured due to your mistake. The first
number is the limit per person. The second number is on a per accident basis.
The third number refers to property damage; it includes the cost of repairs and
replacement of the plaintiff’s property.
Three levels of minimum liability insurance:
· 50/100/50: This level is most appropriate for anyone who has a very tight budget and owns an older car, and only drives when needed. It’s best for elderly people and college students.
· 100/300/100: This level is most suitable for middle-level income earners with adequate savings.
· 250/500/100: This level of insurance is best for car owners with a lot of money saved up. If the policy buyers can afford to invest in an umbrella that costs a million dollars or more, they should go for it to protect them from losing assets in an accident.
If you’re having a hard time finding the best auto insurance policy for you, get
in touch with Global Guard Insurance Services.
We’re a client-centric insurance services provider that is fully committed to helping our clients find insurance policies that meet their needs.
We offer reliable insurance services in Long Beach, CA. Contact us today to get an auto insurance quotes Long Beach.