When it comes to car insurance, the very first thing that will often cross people’s mind is the high amount of money they have to pay for the premium. However, though, what they do not really realize is that they will have to pay even more if they find themselves in an accident without having any protection plan backing them. With that being said, people should not fear the costs of car insurance policy. Instead, they should think about how much they can expect. This usually depends on the coverage they buy.

To start it off, for bodily injury liability, the law in the US requires car owners to buy fifteen to thirty thousand dollars per accident. However, for those that think these figures will not be sufficient to cover for their losses in the case of an accident, they can buy up to five hundred or even one million dollars. This is a good anticipation keeping in mind that the other parties they may hit in the accident may sue them for pretty high figures.

With that being said, those people that have a nice home, own stock and earn handsomely should perhaps buy one to three hundred thousand dollars per person per accident. In addition to that, if they own assets with the value over $300,000, they may need to purchase even higher coverage limits or an umbrella policy. It is recommended that they consult their insurance agent to talk about this.

For the next coverage, the property damage liability, a person owning a car should consider buying a coverage with a minimum value of $50,000. This is because it is not somehow common to see cars with a value somewhere between $50,000 to $70,000 cruising the roads.

In the case of collision, people should think about how much they can pay to fix their car after an accident. Most car insurance companies can usually offer quite a few deductible options, ranging from $100 to $1,000. Deductibles are what people pay before their insurance policy takes over.

Then, just like in the case of collision, a deductible is also available with comprehensive coverage. However, though, the amount is usually lower. With that being said, for a collision deductible with the value of $250, the deductible for comprehensive will be around $100, for an example.

The next coverage is the medical payment. However, there are not few people that refuse to buy this coverage. It is quite unfortunate considering that this coverage will reimburse them for the income they have to miss while they are receiving treatments in the hospital or medical center. After all, it usually costs only around $100 per year.

The last coverage is the uninsured/underinsured motorist (UM/UIM) coverage. In most cases, people prefer to have the same limits for their UM/UIM coverage and their bodily injury liability. Nevertheless, they should keep in mind as well that this particular coverage may also cover for the damages that happen to the car. One rule of thumb, though, is to base the limit on what they may have to lose in the case of an accident.

Author Bio: Car Insurance

Category: Automotive
Keywords: car insurance,motor insurance,motor insurance costs,buy car insurance policy