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How Much Auto Insurance Do You Really Need?

How Much Auto Insurance Do You Really Need? By Kelly Twedell
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In today’s litigious society it is more important than ever to be adequately insured when driving a vehicle. Automobile insurance protects you and others from losses involving your car: It would pay medical bills if you injured yourself or someone else in an accident. It might also repair your car if it were damaged, or replace it if it were stolen. It’s every driver’s responsibility to have adequate auto insurance. This guide will help you determine how much - and what kinds of - coverage you need, and how to get protection at the best price.

What auto insurance coverage do I need?

Most states require drivers to have at least a minimum amount of auto insurance. When deciding what to buy, start by finding out what your state’s requirements are. You can get this information from your state’s insurance department, or from an insurance company doing business in your state.

Deductibles

When it comes to deductibles, you might be tempted to get the lowest deductible offered by your auto insurance company. However, the lower your deductible, the higher your premiums. Go with higher deductibles and save in the long run. Depending on your state, you can go with deductibles higher than offered on auto insurance websites. Just call them and ask for higher deductibles. This will keep your auto insurance premium at a minimum.

Liability

Liability coverage pays for damages and injury to other parties when you cause an accident. Nearly all states require some liability coverage. When buying liability insurance, coverage limits are indicated by three numbers (e.g. 50/100/25). The first number indicates maximum bodily injury liability, in thousands of dollars, for one person injured in an accident. The second number is maximum bodily injury liability for all injuries in an accident. Finally, the third number is maximum property damage liability in an accident. Usually, liability premiums aren't affected by car choice. But in the cases of high-performance sports cars or over-sized vehicles, like the Hummer, drivers are often charged higher liability rates.

Shop for the Best Deal

The first step towards finding adequate car insurance coverage for your budget is to compare rates. Talk to several car insurance companies to find quotes considering your personal variables. When it comes to car insurance coverage, there are many discounts available. You can be eligible for discounts based on: where you live, distances you drive, the type of car you drive, the safety and anti-theft devices on your car, and your personal driving record. Any driver under 25 years of age is surely a high risk in vehicle insurance. The lower a driver's age particularly within the under-25 age group, the more expensive the rates. Low rates tend to reflect a vehicle's safety, which is why larger cars and minivans dominate the least-expensive list.
Most Affordable 2009 Vehicles to Insure
RankVehicle
1Hyundai Santa Fe
2Kia Sportage
3Hyundai Entourage
4Kia Sedona
5Kia Rio5
6Honda Odyssey
7Smart Fortwo
8Saturn VUE
9Mazda Tribute
10Chrysler Town & Country
11Scion xB
12Mazda Mazda5
13Volkswagen Passat
14Jeep Wrangler
15Honda Accord
16Suzuki Forenza
17Lincoln Town Car
18Mazda B-Series Truck
19Chevrolet Impala
20Dodge Grand Caravan

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