When you're searching for the best rates on auto insurance, the first step is determining how much car insurance you actually need. If you end up talking to a car insurance agent when you first begin your search, you're likely to be led towards an expensive policy ? and paying for more protection than you truly need. Finding out what each auto insurance provider offers will take some time to research and evaluate, but you'll be much better off in the long run.
Personal injury protection, bodily injury liability, and collision coverage are just a few options for car insurance but you don't always need everything. Here's what you need to know about each option available from your car insurance provider:
Collision and Comprehensive Coverage for Car Insurance
Collision and comprehensive coverage can cost up to 40% of your total car insurance premium, and will depend on the actual value of your car. These can help with any repairs or parts required after an accident, and can increase the value of your car as a result. In most cases, choosing the highest deductible is your best option, especially if your car is a newer make or model. If you lease your car, you will probably be required to purchase comprehensive car insurance coverage as part of your premium.
Property Damage Liability Coverage for Auto Insurance
If you get into an accident that involves someone else's property, your car will be covered for a certain amount as a result of the accident. Each State has a minimum coverage amount for this, and most insurance providers recommend a minimum of $50,000 of protection.
Bodily Injury Liability Coverage for Car Insurance
If you get into an accident, this type of coverage ensures you'll be protected against any lawsuits that may arise from your auto accident. No matter how good of a driver you may be, you're still at risk for auto accidents that are the fault of another driver. This type of protection makes it easy for you to protect personal assets that may be at risk after an accident.
Uninsured Motorist Protection ? Is it Worth It?
If you are involved in an accident with a driver without auto insurance, you'll be well-protected when you elect this type of coverage. This coverage also covers bike and pedestrian accidents, and is usually very affordable. It's an easy addition to your yearly premium that will help you stay protected.
Personal Injury Protection ? Do You Need It?
Personal injury protection helps you cover any medical and funeral costs incurred after an accident, but if you already have quality health insurance, you will rarely need to use this. Make sure your health insurance plan does cover auto accident-related costs, and only buy this if you absolutely need it.
Choosing the right auto insurance coverage can be challenging, but you can educate yourself on the different plans available before requesting a car insurance quote. Car insurance quotes vary significantly by insurance company, so take the time to narrow down your search by picking the right coverage and protection plans first.
How Much Auto Insurance Do I Need
Life Insurance Needs Analysis is an important step for your financial planning. Even if you sit down with a professional financial planner or insurance agent, you should have some idea of what factors are used to calculate your suggested death benefits. I find that the more informed that consumers are, the more they were satisfied with their purchase decisions. It may take more conversations with informed clients to actually settle on a deal, but those deals tended to stick.
When I worked as an insurance agent, one of the most common things that clients wanted to know was how much life insurance they might need. Of course, as an agent, I had to balance an ideal figure against the cost of the premium. I knew that I needed to offer them enough life insurance to really protect their family. But if I suggested a premium rate that would not fit into their budget, then they would either refuse the policy or cancel it later. I always tried to get some idea of how much money the felt comfortable with spending.
I did write a script for a simple life insurance needs calculator. I took into account a year's salary, funeral expenses, existing debt, and planned future events like college tuition. Of course, any financial planning should include some emergency money too, so I fitted that in.
My life insurance needs estimates were actually fairly conservative, and many other financial professionals and insurance agents thought I should double them. Even with my conservative planning formula, many families were surprised. Of course every family has different needs, and any formula should only be a starting point for discussion and analysis.
For instance, part of a family's debt may the payments on a second car. They would not need that car if one spouse passed away so they could eliminate a payment. On the other hand, if one spouse did not bring in any income, one year's income may not be enough to help the family get back on track.
I think the life insurance needs calculator is a useful tool, and helps present a graphical image which many people enjoy. However it is not the only tool, and doesn't replace personal calculations.
Both Daren Singh & Marilyn Katz are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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