What are the recommended auto insurance coverage levels?
What are the recommended auto insurance coverage levels? The recommended minimum auto insurance coverage is 25/50/25 for bodily injury and property damage liability. You can save over $50 a month on your recommended car insurance coverage by comparing a few quotes.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Jun 23, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jun 23, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Liability and comprehensive collision are two very different types of insurance coverage
- Accidents that may have caused injury to someone or caused damage to property are examples of cases in which insurance can cover your assets from liability
- Comprehensive auto insurance may also help cover the cost of replacing a vehicle when it’s totaled
Knowing which level of auto insurance you need can be confusing. There is no end-all-be-all of coverage that will suit each customer perfectly.
Compare rates to see all the options available for you so you can choose the best available.
Enter your ZIP code above into our free auto insurance comparison tool to see the rates available for you.
Two Basic Types of Coverage
There are many different types of coverage of the basic insurance. Liability and collision basic liability insurance is a way to cover your assets in the case of an auto accident.
Accidents that may have caused injury to someone or caused damage to property are examples of cases in which insurance can cover your assets from liability.
The difference between comprehensive coverage and collision is that if any damages occurred to one’s own vehicle, the damage is covered and paid for by the insurance company
Comprehensive auto insurance may also help cover the cost of replacing a vehicle when it is involved in an accident and cannot be operated safely any longer.
It is important to know what each type of coverage offers and whether that is right for you. Different types of coverage are meant for drivers with different needs.
Many states require auto insurance to protect those that are good drivers. When the offender cannot pay to cover damages, underinsured/uninsured motorist coverage might be a good choice.
Roadside assistance coverage is also often provided by insurance companies however, if you belong to an auto club that provides such assistance; this might not be the best buy.
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Understand the Minimum Requirements
Most states that require auto insurance require only liability coverage. In order to drive a car, almost every state has a minimum level of coverage required.
Aside from the various forms of liability insurance, you may want to consider collision and comprehensive coverage.
Comprehensive plans protect your vehicle in case of unexpected occurrences such as fire and floods. Collision plans cover damage from anything it might come into direct contact with.
Many brokerages offer insurance through several different companies and can provide a more customized insurance solution for each client. In this way, they provide fair and healthy competition between the insurance companies.
However, most insurance companies provide their own sales departments in which offices sell coverage from that particular insurance company.
Meeting Your Individual Needs
The only way to find the best levels of coverage for one’s individual personal needs is to speak with an auto insurance broker. Discuss with your broker. The many options available to you and explain to them your current situation.
For example, homeowners might like to purchase the maximum coverage for liability and collision because if an accident causes significant damage to property, injury, or death, it can lead to legal issues and, ultimately, financial repercussions.
The minimum coverage for liability insurance changes from state to state, so you should check with your specific state.
For example, Alabama sets its requirement at $25,000 for liability against bodily injury per person, $50,000 for all people, as well as $25,000 coverage for property damage.
Before choosing any particular type of auto insurance coverage, ensure that you’ve done your research. That way, you won’t end up paying for things that you don’t need.
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— AutoInsurance.org (@AutoInsurance) February 21, 2023
Additionally, if you have sufficient health insurance, you may be able to get by with the minimum personal injury plan.
Do Your Research and Compare Auto Insurance
There is no auto insurance policy in the world that can prevent accidents from happening, but having the right auto insurance policy can protect you and your loved ones from financial liability.
You will be glad you researched your car insurance coverage options ahead of time when there is an accident or any kind of financial liability.
The bottom line is this: If you’re in the market for an auto insurance policy, do your research. Talk to a broker and find out what it is that you need and don’t need out of auto insurance.
Above all else, don’t compare your specific insurance needs with your friends or other family members’ needs. Just as no two people are alike, neither are their auto insurance coverage needs.
Use our free online comparison tool by entering your ZIP code below to get free car insurance quotes now.
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Frequently Asked Questions
Can I save money on auto insurance by comparing quotes?
Yes, comparing quotes from different insurance providers can help you find the best available rates and potentially save money on auto insurance. By reviewing multiple options, you can identify competitive rates and coverage that meets your needs.
Why is it important to do research and compare auto insurance?
Doing research and comparing auto insurance policies is important to ensure you find the coverage that best suits your needs and budget. Different insurance companies offer varying coverage options and rates, so comparing quotes can help you make an informed decision and potentially save money.
What does proper auto insurance cover?
Proper auto insurance coverage varies depending on individual needs. It may include liability coverage, which protects against damages and injuries caused to others, as well as collision coverage, which covers damages to your own vehicle in an accident. Comprehensive coverage can also be included to protect against non-collision incidents like theft, vandalism, and natural disasters.
Will my auto insurance cover a hit-and-run accident?
If you have uninsured motorist coverage, it may cover a hit-and-run accident where the other driver cannot be identified. However, the specific terms and conditions may vary, so it’s best to consult your insurance provider for clarification.
What is uninsured/underinsured motorist coverage?
Uninsured/underinsured motorist coverage protects you if you’re involved in an accident with a driver who doesn’t have insurance or lacks sufficient coverage. It helps cover your medical expenses and property damage caused by the uninsured or underinsured driver.
Should I purchase additional coverage beyond the minimum requirements?
It is generally recommended to consider purchasing additional coverage beyond the minimum requirements to ensure adequate protection in case of accidents or unforeseen events. Assess your personal needs and consult with an insurance professional for guidance.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.