Car Insurance

Choosing the Right Car Insurance Policy

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To drive within the United States, all motorists are required to carry some form of car insurance.  Depending on the state, this could require just liability insurance, but it could also require collision and comprehensive coverage.  There are many auto insurance policies to choose from.  This article should help in choosing the right car insurance policy.
 
The first step in choosing the right car insurance policy is to determine your state’s auto insurance requirements.  These requirements should be easy to find.  They are often advertised on the states Department of Motor Vehicle’s website as well as auto insurers’ website.  Once the state’s minimum requirements are know, you can better determine what you need out of your car insurance.
 
The next step in choosing the right car insurance policy is to determine the type of insurance you require.  While most states require only liability insurance, many car owners would also benefit from carrying comprehensive and collision coverage.  Comprehensive coverage would cover the insured’s car in the event their car is stolen, vandalized, or in the even they are involved in an accident in which they hit an animal.  Collision coverage would cover the insured’s car in the event they are at fault in a car accident and their car requires repair.  Liability insurance would only cover the other person’s car in the event the insured is at fault in an accident.
 
While it may seem that it would bee good to have comprehensive and collision coverage on your auto insurance policy, you must also consider the additional cost of the policies.  Collision and comprehensive coverage often account for over half of all car insurance premiums.  To determine whether or not you need collision or comprehensive coverage, you need to consider your own situation.  If your car is stolen, would you have the financial ability replace the car?
 
If you have an inexpensive car and no outstanding auto loan, comprehensive and collision coverage may not be needed. 
 

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