How Much Car Insurance Do I Need?
How Much Car Insurance Do I Need? The answer varies for each individual set of circumstances, but for most people, the state required minimum isn't enough.
A common amount of bodily injury liability coverage is $100/300. That's up to $100,000 of bodily injury protection per person and $300,000 per accident. Greater amounts might be better covered with an umbrella policy. I have joked about the state minimums for property damage on several other pages. In today's world, $10,000 won't cover much and you should consider at least $50,000 (drive careful - that's still less than the replacement cost of luxury SUV).
Remember that collision and comprehensive covers repairs or replacement to your car if it's stolen or damaged. Both are generally required if your car is leased or financed, and it might still be a good idea if it's paid off. Balance the cost of the insurance against whether you would be able to afford to pay the entire cost of repairing or replacing the vehicle. For an older vehicle where the book value is low, this insurance might not be worthwhile.
We'll talk more about deductibles later, but generally, a higher deductible policy costs less, and might be a good way to protect you against a big loss and still keep the cost down.