Auto Insurance

How much auto insurance is enough?

Whether you are buying auto insurance for the first time or just checking options, use the following checklist to get the most value for your money.

• Find out what automobile insurance you´re legally required to carry.
• If you are currently insured, read your policies to find out exactly what you´re paying for. When the quotes come in, you´ll have a way to gauge each quote against your baseline.
• Evaluate your financial situation. The goal with insurance is to protect your family and your assets. If you don´t have much to protect, buy what you need, but don´t over-insure.
• Consider the value of uninsured motorist insurance. Since you can´t purchase more than your liability coverage, it might be worthwhile to increase the liability so you can protect yourself if you get hurt and can´t work for a few months.
• Think about your driving skills and decide —honestly—if you should carry extra automobile insurance.
• Consider the value of different types of insurance. Should you carry collision and comprehensive? It depends on the age of your car, your driving habits, and the probability of theft.
• Once you submit your request for estimates, compare each against standard criteria so you are able to compare apples-to-apples.
• When you´ve narrowed down the field to a specific company, check them out. Make sure that they are stable with a good reputation. Also, you can check with the insurance board in your state, get opinions from friends, and even talk to body shops about the differences between insurance carriers.

In the long run, a little research can save you hundreds of dollars every year in excess insurance premiums.