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