Dari Luar Rumahnya Tampak Mewah, Tak Disangka Saat 'Dirazia' Isi Rumah Ayu Ting Ting Bikin Shok! Netter Gagal Fokus Pada Perabotannya..

Finance Guide – How much Car Insurance do I Need?

How much car insurance do I need? Basically, the auto insurance you have is such a collection of several different policies. Those will cover you in many different ways as well. But here is how that thing breaks down.

The terms in insurance policy

Liability coverage policy is going to help you covering the liability and other expenses when you are at fault in an accident. The money will cover they people you had hit but people in your car would not get the money at all.

Bodily Injury Liability or BIL will pay for the medical bills of the people who got injured due to a crash caused by you and you are at fault. Sometimes it is called as 20/50 or 100/300 since the number is describing the maximum amount of dollar that will be paid by the policy.

Property Damage Liability is the policy that will pay the damage to the car that you hit while you are at fault.

And there are other terms that will cover you and your car if you are involved in accident such as the PIP, Uninsured or Underinsured Motorist Coverage, Collision, and Comprehensive.

How much insurance do you need?

You may think that you do not need to spend huge amount of money on PIP policy. Other than that, your health insurance will cover it up instead. This is why you better buy the required minimum amount for the PIP.

But you will need to spend much money for the uninsured and underinsured drivers. Basically, it is kind of the inexpensive policy in most states. It is only 40 USD per year and the coverage is up to 100,000 USD. And if you are in certain collision with a driver with no insurance, it will help to cover the cost that will not be covered by your health insurance.

When it comes to the collision and comprehensive insurance, we will say that it is worth to have, especially if you like to replace or just repair your car after involved in accident. The deductible option is available for this policy and they will pay out according to the car’s current value, no matter how much you have paid for it.

It is advised that you better choose the highest deductible rate you can afford. Higher deductible will affect to lower the premium in considerably amount. So, this is the answer of “how much car insurance do I need”.

Subscribe to receive free email updates: