Sunday, August 5, 2018

USA: Getting the right amount of car insurance, this is what you need to do

How Much Car Insurance Do I Need?
As long as you’re meeting the minimum amount of car insurance required in your state, you can pick and choose the amount of car insurance you buy, based on your budget and how much financial risk you want to take on. Keep in mind that if you’re financing or leasing your car, your lender or lease company may have minimum car insurance requirements you need to hit as well.

Getting the right amount of car insurance is all about balancing what you pay in premiums with the amount of coverage you need. If you have a large cash savings, you can buy less car insurance and use those savings to repair any damages or replace a car that’s a total loss. Similarly, if you don’t have many assets to lose in a liability case, you can carry less liability insurance and lower your premiums. You can also lower your premiums by opting for a higher deductible, but that means you’ll have to pay more out-of-pocket when you make a claim.

Bear in mind that if you carry limited insurance, you'll have limited protection in the event of a collision or theft, and what you save in premiums, you may end up spending on repairs or a new car. Cheap car insurance is not always a great deal. The average cost of a car insurance claim is about $3,000, but with medical and liability costs, a car accident can end up costing in the hundreds of thousands of dollars. Without proper insurance coverage, you may be on the hook for that money.