What Auto Insurance Coverage Do You Need?

What Auto Insurance Coverage Do You Need? Choosing levels of auto insurance coverage is the trickiest part of insurance. We hope these suggestions help you find your lowest auto insurance rates.
 

1. How much auto & car liability insurance do I need?
2. Do I need medical payments or PIP coverage?
3. Do I need uninsured and underinsured motorist coverage?
4. How much auto insurance coverage is required in my state?
5. How high should I set my deductible?
6. Do I need special coverage if my car is leased?
7. Do I need to get auto insurance before I buy a new car ?
8. How much insurance do I need on a used car?
9. Do I need to purchase auto insurance coverage in a different state if I'll be living there temporarily?
10. Can I temporarily suspend my auto insurance if I won't be driving my car for a  while?

1. How much auto /car liability insurance do I need?
As much as you can afford. Liability is the single most important auto insurance you carry, especially if you have a lot of assets to protect. An  increase in Liability protection translates into a relatively small increase in your premium. You get a lot more insurance and security for a little extra money.
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2. Do I need medical payments or PIP coverage?
It depends. If you have good health insurance, you may not. Many of the same events that medical payments covers will already be covered by your health plan. On the other hand, passengers in your car (other than family members) usually won't be covered by your health insurance but will be under a medical payments policy. If you live in a no fault state, you'll probably need PIP, to be covered for pain and suffering, lost wages, and medical expenses. (And it may be required by the law of your state.)
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3. Do I need uninsured and underinsured motorist coverage?
It's a good idea. Around 15% of drivers nationally are driving without car insurance and a even higher amount are underinsured, and uninsured coverage is your only protection against them. We recommend you carry the same levels of these coverage as you do in liability.
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4. How much auto insurance is required in my state?
Click here for a list of all state car insurance requirements.
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5. How high should I set my deductible?
As high as you can afford. A good idea is to set up a separate savings account for all your insurance deductibles and let it be drawing interest instead of paying insurance companies large amounts of money for a low deductible. An increase in your deductible can allow you to make a big increase in more important coverage's, like liability.
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6. Do I need special insurance if my car is leased?
You might. You'll probably be required to carry comprehensive, collision, and maybe auto gap insurance. Check with your lessor for any special requirements.
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7. Do I need to get auto insurance before I buy a new car?
If you don't have auto insurance, yes. If you already own an insured vehicle, your current policy will cover the new car for thirty days. But you'll have to have collision and comprehensive already. Tell your car insurance company about the new vehicle as soon as possible!
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8. How much insurance do I need on a used car?
You should carry the same levels of liability, medical, and un/underinsured motorist coverage as you would on a new car. But collision and comprehensive are optional. If the car isn't worth much, it may not be worth the premiums to insure it.
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9. Do I need to purchase auto insurance in a different state if I'll be living there temporarily?
If your stay will be six months or fewer, probably not. You'll be covered under your insurance. Any longer, and you might want to switch.
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10. Can I temporarily suspend my auto insurance if I won't be driving my car for a while?
Not a good idea. It is more hassle than it's worth. You might have to reapply for auto & car insurance, and some auto & car insurance companies charge higher rates if you haven't held continuous coverage for a period of time. And if your car is financed, the lien holder will require that you maintain insurance on the car whether you expect to be driving it or not.
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