How Much Auto Insurance Should A Person Have?
So how much auto insurance does a person really need? It all depends on the individual, and the question of getting liability or full coverage is a tough choice sometimes. If you are on a low budget, liability auto insurance may be your only option. If you can afford full coverage though, how should you determine whether you should get it or not? It is always a smart idea to get full coverage auto insurance on any car, but sometimes if it is just an old car you use to get from point A to point B, it might not be worth it.
Sports Cars
If you are the owner of a sports car, full coverage is the least you want to get! Sports cars are expensive, and the parts for repairs are way higher than for a non-sports car. If you happen to hit something on accident, and have some serious damage done, full coverage can save you thousands of dollars easily. Even liability insurance for such cars can be rather expensive, but you will not have any safety net to fall back on if you have an accident. Especially if someone backs into your car in a parking lot, and drives off. Their insurance can’t reimburse you if you do not have the insurance information.
Cheap Cars and Trucks
If you just have an old junker or a pick up truck you use just for occasional hauling, liability coverage should be sufficient. In general, if a car or truck does not have a high blue book value, it may save you money in the long run to just purchase liability only. Full coverage is also a good option to take out on such vehicles, but if you do not have a lot of money to throw around liability insurance is recommended. No matter what type of insurance you choose, make sure it is the option that has the most potential to save you money.
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