How much auto insurance do I need to purchase?
Auto insurance blends several types of coverage into one policy to suit your needs. Typically, your policy will include some combination of liability, uninsured motorist, collision, other than collision, and medical coverage. Keep in mind that coverage helps you when you need help the most, so it’s wise to ensure you have enough.
How much auto insurance is right for you?
Every person is unique – and your policy should reflect that. Auto insurance is not a one-size-fits-all policy, which is why it’s important to understand how much coverage plenty for you is. To calculate coverage, consider:
Liability and UM/UMPD – This pays for the damage you cause to others if your car is involved in an accident. It also protects you from being wiped out financially if you are sued after an accident. Keep in mind that the greater your assets, the more you stand to lose. If you have substantial financial resources, you may need liability coverage that exceeds the coverage an auto insurance policy can provide. In this case, obtaining a personal umbrella policy will help to protect your assets. Uninsured/Underinsured motorist coverage protects you in case someone doesn’t have insurance, or enough insurance when they are responsible for the damage.
Collision – Covers damage to your vehicle caused in an accident. Cost of this coverage depends on the deductible (how much you pay out of pocket) you choose. This coverage can be changed depending on the value of your car. It is a good idea to discuss this with your agent as your car ages because continuing collision coverage may not make sense as a vehicle depreciates.
Other than Collision (Comprehensive)– This coverage pays for your vehicle if it is stolen, vandalized or damaged in some way other than in a collision. Maintenance and warranty work are not covered under this coverage. Other than collision also has a deductible you pay out of pocket before the policy kicks in.
Keep in mind that the cheapest auto insurance may not provide enough coverage to suit your needs. All it takes is one accident to exhaust your policy, leaving you on the hook for remaining expenses. Discuss your needs with your insurer to ensure you obtain optimum insurance. The team at Reata Insurance Group are here to help. We work with you to secure the right coverage at the right price. Contact us today to get started.