HOW MUCH CAR INSURANCE DO I NEED

HOW MUCH CAR INSURANCE DO I NEED

In today's economy, people are looking to save money anywhere they can. Many choose to remove extraneous expenses from their budget. Not all expenses are luxuries, however, and for a person looking to survive on a bare minimum budget, it's important to cut costs on necessary bills as well.

One bill that many people look to cut is car insurance. Just turn on the TV and you will see an insuance commercial telling you how much you cna save by swithcing! While basic liability insurance is required by law, other coverage is optional. If you're looking for a way to cut costs on your car insurance, you may be interested in cutting some coverage from the policy. How much car insurance do I need? Once you understand exactly what your coverage does, you can make an informed decision about what changes you can make to the policy.

Property Damage Liability & Bodily Injury Liability

Liability coverage pays for damage or injury done to another person or their property. In the event that you cause an accident, your liability insurance will cover the damage you are responsible for. Coverage is sold with a per-accident limit, so that as long as the damage you cause costs less than the limits on your policy the damage will be completely covered by the insurance company.

If you exhaust your policy limits, however, you will be required to pay the difference out of pocket, unless you have a personal umbrella policy to cover the excess liaiblity. Liability coverage is required in most states, but the required state minimum varies from one area to the next - so before dropping your limits, be sure to check what the state requirement is.

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