How Much Car Insurance Do I Need?
Lizards! Cavemen! Cartoon secret agents! Everywhere you look, someone is trying to sell insurance. These three principles might help save you a bundle.
Cover Your Car
The first purpose of car insurance is to cover your vehicle’s potential damage. That’s not just physical damage – it’s also the financial damage that could result from a car you owe money on getting wrecked. If you are still paying off your car, you will need to get something called “comprehensive” insurance, to make sure that even the big things that go wrong are able to be fixed. This is both for your peace of mind and for the lender.
Cover the Other Car
Another type of car insurance is called liability, and if you don’t need to worry about paying off a car loan, this may be the only kind of insurance you need. What this does is cover the other person’s vehicle if you are at fault in an accident. This is the most basic kind of insurance, and it’s part of being a responsible driver – accepting that if you make a mistake, you’ll pay for the consequences.
Cover Injuries for Everyone
The final piece of the insurance puzzle is medical riders that can help cover your hospital costs (or the costs of your passengers and others involved in an accident). Insurance agents are very good at spinning out scenarios of people who thought their private medical insurance would cover them in an accident but were mistaken. They will insist that the comparatively low cost of the medical rider is essential for your peace of mind and that of your family.
They may be right, but it’s a good idea to check with your private health insurance before you buy. You also should consider the place where you live – are floods or other “acts of God” a possibility? Get coverage now, because after the fact will be too late.
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- What is Full Coverage Car Insurance?
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