car insurance coverage

How Much Car Insurance Do I Need?

When you look at your car insurance, you may ask yourself, “do I have too much coverage?” or, “do I not have enough?” Here’s what you need to know.

What Car Insurance Potentially Covers

To know how much coverage you may need, you need to know the types of car insurance available to you. 

Bodily injury liability insurance protects you by paying for another driver’s medical bills in an accident where you were at fault. So, if you cause an accident, and the other person involved holds you liable, you’re covered up to the limits of your plan. You get to decide how much of this coverage you want to purchase, but most states have a requirement.

Most states also have a minimum requirement for property damage liability. If you cause an accident and are held liable, this coverage will pay for damages caused to property. This doesn’t just include vehicle damage, but damage to things like buildings, telephone poles, etc.

While not required by states, collision insurance may be required if you take a loan out on your car. Collision insurance pays for damages to your vehicle when you are at fault in an accident.

Comprehensive insurance covers damage to your car that isn’t a result of an accident. Hail, theft, fire damage, and more. 

Uninsured/underinsured insurance will provide coverage in case of an accident at the fault of an uninsured/underinsured motorist. Similarly, personal injury protection (PIP) coverage will provide funds to your medical bills in case you cause an accident.

There are also plenty of other types of car insurance you may want to consider. Gap insurance covers the difference between the value of your car and your car loan if it’s totaled. Umbrella insurance provides coverage for everything into the millions above your regular car insurance policy.

Rental reimbursement pays for a rental vehicle if your car is being repaired, and roadside assistance coverage covers tow trucks, locksmith, and basic emergency repair services. 

What Car Insurance is Required

When figuring out how much coverage you need, you need to know what your state requires. Bodily injury and property damage coverage are both required by every state. The amount of coverage required depends on the state. Make sure to check your state requirements, and go from there.

Uninsured motorist (UM) and/or underinsured motorist (UIM) is required by 22 states, and 13 states require personal injury protection (PIP) coverage.

How Much Coverage You Want

So, all of that being said, how much coverage do you really need? Of course, you’re going to need your state’s minimum requirements. However, you’ll likely want something a bit extra.

The typical suggestion is 100-300-100—$100,000 for bodily injury coverage, $300,000 for bodily injury claims for a total accident, and $100,000 for property liability coverage.

Your Insurance Partner—Call Secure Insurance Group

Secure Insurance Group can help you find car insurance at a cost that works for you. Get a quote today, or call 1-877-7328.