When it comes to auto insurance, you want to be adequately covered if you get in an accident, but you don’t want to pay any more than you have to.  Navigating your way through this murky subject is tricky, so here on some tips to follow:

Step 1 – Starting Out:  Keep telling yourself there is money to be saved.  How much?  Possibly hundreds, even thousands of dollars per year.  If you type all your insurance information into an online comparative insurance service, you’ll get quotes that could vary as much as $800 or more per year.

Step 2 – How much Coverage Do You Need:  To find the right auto insurance, start by figuring out the amount of coverage required, which varies from state to state.  Next, you need to decide what you need in addition to the required coverage, which is partially based on your assets.  You want to carry enough liability coverage to ensure your home and savings are safe.  General recommendations for liability limits are $50,000 bodily injury liability for one person injured in each accident, $100,000 for all people injured  in an accident and $25,000 property damage liability (in insurance terms, this would be 50/100/25).  However, you should let your financial situation be your guide.

Next, different types of coverage should be considered, such as Personal Injury Protection.  This type of coverage pays your accident-related medical bills no matter who is at fault.  If you have good health insurance coverage, you may decide to forego PIP insurance; however, you will be responsible for any deductibles, co-payment, or co-insurance as dictated by your policy.  Remember, the insurance company for the at-fault party isn’t required by law to pay medical bills as they are incurred; they need only pay at time of settlement which means you are initially responsible for any bills incurred. 

Uninsured/Underinsured Motorist (UM/UIM) coverage will protect you in the event you are involved in an accident caused by someone who is not carrying insurance or who does not carry sufficient insurance to fully compensate you for your injuries.  Remember, though, that you cannot purchase higher limits of UM/UIM coverage than you do for liability coverage. 

Finally, remember that your driving habits may be a consideration, especially when deciding whether to buy collision and/or comprehensive coverage.  Your driving history, what types of roads you typically drive on, and how old your vehicle is will help determine what type and how much coverage you should purchase. 

Adapted from an article by Philip Reed, Senior Consumer Advice Editor of CarInsurance.com.

Next Blog- Steps 3 and 4 of Ten Steps to Buying Auto Insurance.

Law Offices of Buckland & Schumm, P.S.  We offer free consultations and have over 27 years experience EXCLUSIVELY in personal injury law, with a long history of success helping accident victims understand their legal rights.