How Much Money To Invest on Auto Insurance
Determining how much your auto insurance should cost is complicated. Insurance companies use your driving history, age, gender, location, how much you drive and many other factors when setting car insurance rates and quotes can differ wildly from one provider to the next. Your rate also changes depending on how much coverage you want to access. It is difficult a bit to calculate how much money to invest on auto insurance without knowing how to get a car insurance quote. Getting quotes is the first step of determining the right value.
The golden rule of determining how much coverage you want to buy is to compare it with everything you own. If an accident happens and you cannot afford paying the bills for repairs and injuries, you will be forced by authorities to sell from your belongings and reimburse the victims. So, to give you an idea, you must invest in car insurance for as much as the value of your assets. And we are referring just to liability coverage. If you have a $300.000 value in assets, then this should be the maximum coverage for liability coverage (bodily + property damage).
Buying the full coverage is your option. But always buy the minimum required coverage, which is usually comprised of liability coverage and sometime, depending by state, other coverage, typically uninsured motorist coverage. Selecting full coverage is a delicate matter and it depends on the value of the car. If you own a new car which is not that cheap to repair or replace, you should consider buying comprehensive and collision coverage. Make sure to manage the premiums for these policies by smartly selecting deductibles. If you have an old car, costing less than 10 C&C premiums, consider dropping the coverage.
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