How Much Car Insurance Do You Need On Your Car?

how much car insurance do you need?

Finding out how much car insurance you need can be confusing.

You would need to make some inquiries about the right online car insurance policy that you can afford. Make sure  you know how much the minimum car insurance coverage your state requires and the rule they follow. Be sure you get the correct insurance coverage that protects you and your car.

Before doing this, do a  deep research on the different insurance policy which you can get. Take a taxi to any insurance company in your area and talk at length with them about your needs. They would recommend the insurance policy that best fits your needs. You also need to study their terms, policies, and regulation to have in-depth knowledge of what they can offer.

Why do I need car insurance?

Many people keep asking why they need insurance coverage. Is it worth it?

Yes! And here’s why

Getting car insurance is important to help you protect your assets, damages from natural disasters, car robbery, you, and others. We expect you to pay a small token every month, called deductibles. This would make sure it covers your car from all damages except regular car break downs you can handle yourself.

If you were involved in a car accident, and you have no active car insurance, you are not liable to get help or any form of coverage from the insurance company.

If you damaged another car, owning car insurance would save you from spending a lot of money on damages incurred.

what could happen if I don’t get a car insurance policy

Driving a car without car insurance can cause several consequences, financial and health risk taken. For instance, you lend your car out to a friend without insuring it you are putting you and your friend at an enormous risk

If you get stopped by a police officer on the road, driving an uninsured vehicle, they have every right to write you a ticket for violating the rules of owning a car. They may go further to tow your car, which is part of the penalties, and you would need to appear in court where you apply for a plea.

Car insurance rates

Determining the right car insurance that would be beneficial to you and also suit your budget is up to you. You cannot buy a car insurance policy just because your friend uses it. Although that may influence your decision a bit, the final decision on the car insurance policy to buy still depends on you.

The reason for this is that the value of your vehicle or assets would differ from your friend’s.

You need to understand how car insurance rates work. For instance, if the only asset you have is a $25,000 car, getting an insurance policy that enough to cover just that asset. Buying a bigger insurance policy would only cheat you and you would end up paying more. If you own more assets, the same thing applies to it, get a policy that would cover all your assets. Going for a lower insurance policy would come with penalties.

However, before buying car insurance you would need to consider the types of auto insurance so you can save money when the right time comes. The types of auto insurance include

  • Liability insurance- this type of insurance covers damages that may have occurred to the other party. That is if the accident is your fault. They cover injuries, damaged vehicles, and any other lost assets as a result of the accident all for the other party.
  • Collision insurance– this insurance covers damages on your car as a result of an accident. However, you would need to pay a monthly deductible to keep your insurance up to date.
  • Comprehensive insurance– this type of insurance covers other damages to your car that is not as a result of a car accident. They could include theft, hail damage, flood, fire outbreak, etc
  • Personal injury protection-this insurance pays for damages you or your passengers may have incurred as a result of an accident. It pays for all the medical bills you would need to pay.

At the end of the day, the amount you would need to purchase car insurance depends on the number of assets you have and their values. I hope this article was helpful to you!


Car Insurance Advisor content is not written by a licensed  insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for your situation

Everything You Should Know About Online Car Insurance

car insurance facts 2020

With this age of the internet, buying car insurance online has become much easier and more convenient. You should however know what to expect and have something in mind to make it easier for you to research coverages, get an appropriate quote and make a decision on what insurance to choose.

This article will discuss the different pros and cons of online car insurance, how to get a quote online and the things included in an online car insurance quote.

What Is Car Insurance?

Car Insurance helps pay for damages, repairs, medical expenses and more to protect you from having to pay extra money out of pocket to pay for any claims. It helps protect your car from unforeseen risks and losses resulting from theft or any losses incurred from accidents.

What Are The Pros and Cons of Online Car Insurance?

Your target should be to find the best way to save money on car insurance while getting all of necessary coverage you need. Buying car insurance has become extremely popular but before deciding to use it, you should compare it to the local route of using an insurance agent to apply for insurance. Below are the different pros and cons to look at before you buy car insurance online.

  • It is advantageous to use because of its convenience. This is because you can purchase the insurance at anytime and anywhere.
  • It also saves you extra money by skipping the middleman between you and the insurance company. You don’t have to go through the hustle of contacting an agent nor does the insurance company have to pay an agent.
  • It is easy because you can ask any questions online. Insurance companies have ready and easy-to-understand information concerning any of your insurance questions.
  • It can sometimes prove to be difficult because it will require you to have prior insurance knowledge. This will make the process hard for you if you have to research everything yourself.
  • It is also difficult to speak with a person since everything is online.

Steps to Take When Looking For Car Insurance Quote Online

You should compare different insurance carriers’ rates to get the best deal on your policy. You can do this by searching on their respective websites to get your desired results.

The first step you should take is to gather the necessary information and documents. This may include your vehicle identification numbers, the current policy you are using, the license numbers of anyone driving in your home, the annual mileage, what each vehicle is used for and any driving violation or accidents in the last five years.

You should then get an insurance quote online. You can do this by visiting multiple insurance companies online. Compare them by looking at all the different quotes, amounts and coverages. You can use your declarations page to choose the levels of protection you have currently.

Compare the car insurance quotes by looking at the best available options. The ones you should prioritize are the coverages offered, deductible limits or whether there are any discounts available to get cheap car insurance online.

Having compared them, you can then look at the policy details. This applies when you have a quote in mind and you want to change it a bit to fit your desired needs. Looking at if any one of them offers any discounts for good drivers or if any of the quotes you looked at have something, in particular, you may be interested in.

You can then apply for coverage after you have chosen the coverage that works best for you. You should, however, know that the quote was simply an estimate and you shouldn’t rely too much on it because the insurance company will determine the final rate after looking at all the details.

Things Included In an Online Car Insurance Quote

Online car insurance quotes include different coverages that will protect your car. It is extremely important to look at what they cover and they include;

  • Rental car insurance. This covers any expenses and costs of a rental vehicle used if you can’t use your car due to an accident.
  • Towing insurance coverage. This helps pay for any expenses incurred from towing if your car happens to break down. It, however, doesn’t cover the costs of any repairs.
  • The property damage liability covers the expenses resulting from the damages you may make to another person’s property with your car during an accident.
  • It also includes the car insurance payments required when paying for you and your family’s bills after an accident. This may include doctor’s visits, medical treatment costs, ambulance fees and more.
  • Collision coverage helps pay for the costs of any repairs to your car after a car accident.
  • Comprehensive coverage covers the costs for replacing or repairing your car in case it is damaged by weather or fire or if it’s been stolen.

The Bottom Line

Therefore, it is easy to get car insurance online, you should however have everything ready and prepare beforehand before searching for online quotes as already explained above.

How to Save Money on Car Insurance in 2021

Everyone likes to save money on their online car insurance and score deals that reduce the prices but most of them think there is nothing they can do actively to lower their car insurance. However that is not true, there is a lot you can do to reduce your insurance rates but there are some that are much easier than others and they all don’t apply to every insurance carrier.

This article focuses on the different things that affect your car insurance and how to effectively save money on car insurance in 2021.

Things That Affect Your Car Insurance Rates

Before looking for ways to save money on car insurance in 2021, you have to analyze the different factors that affect your car insurance rates and these include;

  • The age of the car. When you get into an accident with an old car, the cost of the repairs needed is much higher compared to the cars entire worth.
  • The credit score. Most insurance companies look at your credit score when determining your car insurance premium. The drivers with low credit scores pay higher insurance.
  • Safety rating. Cars with high safety rating have lower rates because you are not required to pay for your medical bills or that of anyone else since the chances are low of ever needing to.
  • The likelihood of theft occurring. Some cars genuinely have more chances of being hit by thieves than others. You should evaluate the type of car you are driving to determine how much your car insurance will cost you.
  • The size of your car. Large cars are usually safer than their smaller counterparts in an accident. Hence large cars have a lower premium than small ones. But cars with larger engines have higher insurance rates.
  • Your car’s driving history. If you have a bad driving record, insurance companies may refuse to give you insurance. This is because they believe that since you have a history of getting into accidents or making claims, you are more likely to do it again than someone else who doesn’t have a driving history that is as bad.

Ways to Save Money on Car Insurance

Having understood the different things that affect your car insurance rates, you can now look at the ways to save money on car insurance which include;

Find out about the discounts available. These lower your insurance rates and are often easy to get. In 2021 with the coronavirus pandemic, there are covid 19 discounts you could ask for. These provide discounts to customers that are going through financial difficulties due to the pandemic.

Look at multiple car insurance quotes. Always take your time when looking for a new insurance policy; this is to enable you to get a plan that fits your particular needs. It is better to get a few different quotes from different companies because every company has a different way of calculating its rates.

You should bundle your policies. Bundling is one of the easiest ways you can reduce your insurance premium. This is where you buy multiple insurances from the same provider. In that, you can buy both your insurance coverage and your home owner’s policy from the same insurance company hence saving and lowering your car insurance premium.

Compare and Shop Around. It is important to shop around when selecting what insurance company to go with and compare every one of them. This will enable you to obtain the best car insurance quotes. You can do this by calling insurance carriers or looking for auto insurance quotes online. Research as much as you can ahead of time to get the best deal.

Increase your deductibles. This is the most effective way that you can reduce your insurance rates. It is the out of pocket money that you can pay in case of an accident. It is important to set aside a certain amount of your car insurance premium saving to ensure you pay a higher deductible in times of accidents.

Drive less. You can smartly save money on car insurance by reducing your daily commute since the miles you drive impact your insurance rate. Driving less reduces the vehicle’s maintenance costs like gas and repairs. It is easy to do this; you can opt to use public transportation instead or decide to move closer to work.


Car insurance rates increase every year and you can’t predict how much you will be required to pay. However the above steps will help you reduce and ultimately save money on car insurance in 2021.