Car Insurance: How Much You Need & Understanding Your Policy

Understand your auto insurance policy and find out how much auto insurance you need

Accidents happen, and can happen to anyone, but without the proper auto insurance, car accidents can be financially devastating. While most states require a minimum level of car insurance, is that truly enough for you? Let us help you figure out how much car insurance might be right for you and what to look for when purchasing a policy. 

How much car insurance do I need?

The amount of car insurance “needed” will vary from person-to-person, but whether you’re driving a brand new car or an older model, you’ll want to make sure you’re covered in case an accident happens. Our auto coverage quiz can help you get a better idea of how much coverage might be right for you. If you’re still confused, have a few questions, or are ready to start looking at coverage options, we can help you with the leg work and compare quotes from some of the most trusted insurance companies in just minutes. Shopping for car insurance doesn’t have to be time consuming or overwhelming—let us help.

Understanding Your Auto Insurance Policy

Another way to better understand how much car insurance you need, it’s helpful to get to know the different types of coverage. The six basic types of car insurance include: 

  1. Bodily Injury Liability – If you’re at fault in an accident, bodily injury liability should cover medical, rehabilitation and funeral expenses sustained by all injured passengers, including those not in your car. This plan should also pay your legal and settlement fees if a lawsuit occurs as the result of an accident that you caused.
  2. Property Damage Liability – Like bodily injury liability, this coverage kicks in when you’re at fault for an accident. Property damage liability covers parts and labor for car repairs, property inside the other party’s vehicle, and any items you may have hit. While this plan will also pay certain legal expenses, it typically does not cover damages to your own vehicle or property.
  3. Personal Injury Protection (PIP or No-Fault) – Regardless of who is at fault in an accident, PIP covers most medical expenses—including hospital, rehabilitation and in-home assistance costs—along with lost wages and funeral expenses incurred by you and your passengers. Certain states will require personal injury protection in addition to other types of coverage.
  4. Uninsured/Underinsured Motorist Protection – If you’re hit by a driver with either no or inadequate coverage, uninsured/underinsured motorist protection will help pay for the medical expenses, rehabilitation and funeral costs incurred by you and any other passengers in your vehicle. It can also help pay for the settlement of any lawsuits caused by an uninsured, underinsured or hit-and-run driver. Some states will require this type of coverage, while others consider it optional.
  5. Collision – If you are at fault in a car accident, collision coverage pays for any damages to your vehicle, up to and including your vehicle’s cost.
  6. Comprehensive – A comprehensive plan typically covers damage to your car from an event that’s out of your control, such as a natural disaster, theft, vandalism, or other unpredictable events.

If you’re trying to determine what car insurance coverage is right for you, we can help. Our licensed insurance agents will get to know your needs and can share unbiased quotes from some of the most trusted insurance carriers in just minutes. We’ll help you find the best coverage available to you.

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