How Do You Know If You’re Paying for Enough Auto Insurance Coverage?

When you wind up in any kind of accident, from a fender bender to a nasty head-on collision, one of the first things you’ll do is panickedly look up what level of damage your current insurance plan covers. Most states require that you have at least some sort of coverage, but depending on what you’re paying for, you might be left holding a pretty big bill for all of those necessary auto repairs.

What most people wonder is, “How much coverage is enough coverage?” Deciding whether to err on the side of caution and shell out the big bucks for insurance or to hold back and roll the dice in hopes of a safe driving experience can be a challenging choice.

To help you decide what level of coverage is good enough for your car, here are some things to consider.


Do You Prefer to Take Risks or Play It Safe?

 If you like to live life to the fullest and cross your fingers while hoping for the best, then you might not be the kind of person who feels comfortable shelling out hundreds for maximum coverage. However, if you’re the kind of person who won’t rest easy at night because you worry that you won’t be protected financially, then paying extra for coverage might be well worth the expense. Peace of mind is a priceless thing.


What Are the State’s Requirements?

This is obviously something you’ll have to consider when choosing a coverage amount. Most states require you to have around $100,000 in injuries per person, $300,000 for injuries per accident, and $50,000 for property damage per accident. However, this can certainly fluctuate depending on where you live, and just because it’s what’s required doesn’t mean it’s the best option for you. Ask an agent to help you determine what level of coverage is right for your vehicle, assets, and income.

What Kind of Cars Do You Frequently See on the Road?

This might sound silly, but you should think about the kinds of cars you drive next to, park next to, and can potentially wind up in accidents with. Will your insurance likely need to cover damages for a $100,000 Tesla, or are most of the cars in your neighborhood within an average price range? The kind of car you wind up in a wreck with can seriously impact your financial situation, so it pays to think about the possible scenarios you’ll find yourself in.


Do You Own a Home and Have Savings?

Although this is your auto insurance policy, not your home insurance policy, you still need to consider how your coverage affects your belongings. You need enough liability insurance to cover the value of the important things in your life, not just your vehicle.

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