Auto Insurance is one of the most important and commonly requested policies with regards to Personal Insurance. Everyone who drives a car is required to carry Auto Insurance, but that does not mean it is safe to drive with the minimum state limits. There are many things to consider when determining which coverages are best for you, we are here to help you in your search to be properly insured.

How Much Auto Insurance Do You Need? Knowing Your Coverages.

Before you pick coverage limits for your policy, it is important to understand what the coverages mean and how they relate to you. When we mention the minimum state limits in California, we are referring to the 15/30/5 limits, but what does 15/30/5 mean? Well, we are going to break it down for you. Another way to look at these limits is $15,000/$30,000/$5,000. The first number, $15,000, is the Bodily Injury Liability limit per person in a single accident. The $30,000 limit is the Bodily Injury Liability limit for multiple people in a single accident. Lastly, the $5,000 is the Property Damage Liability limit for a single accident. As you can imagine, $5,000 is not a lot of coverage for someone that is living in California. We understand it is important to save money, but having coverage this low, while legal, may open you up to huge losses if you have a large claim. If you agree that the minimum state limits are not enough, there are other coverage limits available to you, which include 50/100/50, 100/300/100, and 250/500/100, and others as well that may better fit your needs.

How Much Auto Insurance Do You Need? Protecting Your Vehicle

In addition to the coverages mentioned above, there are additional options available to purchase, including Uninsured/Underinsured Motorist Coverage, Collision, Comprehensive, Roadside Assistance, Rental Car Reimbursement and more. Uninsured/Underinsured Motorist Coverage is a valuable coverage that will cover costs associated with an accident with another motorist who has little or no coverage of their own. Collision is another valuable coverage that will cover your personal vehicle for repairs arising out of an accident. Comprehensive provides coverage for your vehicle that may arise from your vehicle being damaged or stolen, even if not related to an accident. As these coverages are optional, it is important to think about your assets, the value of your vehicle, and how having these coverages affect your premium.

How Much Auto Insurance Do You Need? Calculating Your Coverages

When determining the proper coverage limits for your policy, it is imperative to review your personal financials to make a calculated decision based on your current financial situation. Do you own a home? How much are your vehicles worth? What other assets do you have that may be compromised by a large claim? These are all important questions you must ask yourself when establishing the correct coverage limits for you. Without thinking about this information, it is very difficult to decide on proper coverage limits.

Do you need help determining what coverages are right for you? Let us know! We are committed to knowing, meeting, and exceeding your needs and expectations! Give us a call at 925-297-4829.