AUTO INSURANCE ARTICLE
How Much Car Insurance Do I Need?
By: BethAnnState Requirements for Car Insurance
Each state has different amounts of insurance required to obtain a driver’s license. You will need to check with your state’s liability requirements to determine how much car insurance to purchase. For an older car, you only want to get the minimum required by your state. This will protect you in the event of an accident. This principle holds true for cars that are in poor condition or the value has significantly decreased.
Replacement Car Insurance Coverage
Replacement car insurance coverage is imperative, if your vehicle is brand new or in very good condition with low mileage for its actual physical age. Check with the insurance agent to get a price for the amount of insurance premium hike to expect with replacement car insurance coverage. Estimate the value of your car. Go ahead and get the replacement car insurance, if the replacement coverage is less than half the actual replacement value of the vehicle.
Collision Car Insurance Coverage
Collision car insurance will cover the expenses if you’re in an accident, particularly if the other motorist is at fault with no liability insurance or inadequate insurance. Collision insurance is typically purchased for cars that are 5 years or less in physical age or have extremely low mileage. If your car qualifies for replacement car insurance coverage, you also want to purchase collision coverage.
The age of your car and the mileage will be great determining factors on how much car insurance coverage you should purchase. Older cars or higher-mileage cars need less insurance than their counterparts.
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