How Much Liability Insurance Coverage Do you Really Need

The auto insurance industry is a pretty complicated one, and while finding a company to insure your car is a pretty straightforward task, getting cover that is actually suited to your needs can be a whole lot tougher.

Naturally, you want to find the cheapest premium possible for your vehicle. With the cost of living rising considerably in recent years, paying more than you need to for car insurance is something that could be done without. There is a fine line to tread when purchasing an insurance premium; too low can leave you dangerously underinsured, too high may leave you over-insured to the point where premiums are beyond your financial means.

Cheerful girl sitting inside car with thumb up

State requirements

Every state has a minimum amount of insurance that is required, and while it is legally acceptable, taking out the lowest possible premium is rarely enough. In some states the minimum liability coverage is just $30,000 per accident, $15,000 per person, and as low as $5000 property damage. The fact that around half the states require $50,000 per accident, $25,000 per person and $10,000 property damage by law tells you that those first set of figures are not anywhere near adequate.

Where possible you should always purchase more than the minimum requirement, as there is always a chance you could be involved in an accident with a car worth ten times the $10,000 minimum property damage.

Insurance companies tend to recommend liability coverage of at least $300,000 per accident, $100,000 per person and $50,000 property damage; you may need more than this, you may need less. A general rule of thumb when deciding on how much coverage you need is to look at your income and assets; the higher your income and the more valuable your assets, the more insurance you will need.

Shopping around

Now, when you decided on a suitable level of coverage, you are going to need to begin the task of shopping around. When it comes to buying car insurance, rates can vary greatly, sometimes by more than $1000 between companies for the exact same coverage. For this reason, you are going to need to obtain and compare at least five different quotes. There are different ways in which you can go about this.

The most obvious way of gathering insurance quotes is to call or visit insurance companies; this will get you what you need and will allow you to do some haggling in order to negotiate a better deal. The downside to this method is that it is time consuming, and with many insurance companies existing online these days, you may be missing out on potentially better quotes.

The other way to obtain a car insurance quote is to use the internet and a comparison website like YesRate.net. This method is extremely easy to do and will provide you with several quotes in the same place at the same time, giving you the chance to instantly find the best premium. By inputting your zip code, and a few details about you and your vehicle, you can be delivered quotes in minutes and with little effort.

Comparison websites are able to search through databases containing hundreds of insurance companies and provide you with a quote matching your preferred level of liability coverage.

There are two important factors to remember when using a comparison website; firstly, it should be completely independent; and secondly it should be completely free to use. Fortunately, eCar Insurance is both and provides you with everything needed to find the best premium at the best price, ensuring you have exactly the right level of coverage for your vehicle.

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Save Money by Comparing Cheap Car Insurance Quotes Today

The news programs may try to convince us that things are improving with the economy but many of us still have to struggle with our finances. Most of us need to be stricter with our budgets, and this means spending less. One area of expenditure where many of us fail to get the best value is with our car insurance. This happens because we become confused by the all the available options and we do not effective comparisons. The outcome of this is that we usually end up paying an excessive amount of cash for an insurance policy that does not really suit us. The amount of money we pay for this coverage can be a meaningful chunk of our available financial resources so it just makes sense that we get the best possible deal.

The Factors that Influence Car Insurance Quotes

The first step to getting the best deals on car insurance is to know the factors that are involved when determining these quotes. These factors can include:

  • Your age
  • Driving experience
  • Driving history
  • Whether you are male or female
  • The type of car you intend to be driving
  • The power of your engine
  • The cost of getting your car fixed
  • Where you live
  • The amount of driving that you are likely to be doing
  • Any other risk factors that might make you more likely to need to make a claim.

Understand and Assess Your Own Insurance Situation

Once you understand the factors that the insurance company will be considering when determining your insurance quote it makes it easier to assess your own situation. You will also want to look more closely at your current policy to see what it covers and what it does not cover. You may well decide that you are paying for coverage that you do not need – there may even be extras on there that you were not even aware that you were paying for. Once you have a fuller understanding of your current policy it makes it easier to compare it with what else is out there. Remember that you should never just compare policies based purely on price because you may not be comparing like with like.

Getting Multiple Quotes is Vital When Looking for the Best Auto Insurance Deals

If you just consider one or two insurance quotes it is going to be highly unlikely that you will be getting the best possible deal. There is a great variation in what different insurers are offering and the amount they are charging varies significantly. So the odds are really against the first one you pick being the best option. It may sound like a real chore but you do need to get multiple quotes if you want the best possible deal.

Price Comparison Websites

The good news is that you do not have waste all your free time investigating your car insurance options. The internet has revolutionized the way we do things, and there are now websites that can almost instantaneously check your options and provide a list of the best deals. All you need to do is input your information and some clever software will be able to do the rest. The great thing about computers is that they can really dig deep into what each insurer is offering to make sure that you find the best possible deal.

There now hundreds (if not thousands) of websites that offer car insurance quotes. The problem is that some of these are biased to push you towards certain companies. What you want is a price comparison website that checks out multiple options and will provide an unbiased list of candidates. If you use any comparison website and they are only providing quotes from one insurer you can bet your bottom dollar that they are working on behalf of this insurer – the advice here would be to run a mile.

So the secret to using insurance price comparison websites is to find one that will search out options from as many companies as possible. You will also want concise information that will allow you to compare what each insurer is offering – a recommendation list without such data is fairly useless. You will need to know things like level of coverage and any limitations.

Always Negotiate Insurance Quotes

Even after you have found what you believe is the best possible deal for your car insurance it does not mean that you should stop there. It is still worthwhile to try and negotiate an even better deal from the insurer. There is so much competition these days that many of these agents will be willing to sweeten the deal if it means getting you on board. There are also other ways that you might be entitled to discounts such as:

  • You have a good driving history and have never needed to make a claim.
  • You are a grade ‘A’ student – this tells the insurer that you are a dependable person who does not tend to take unnecessary risks.
  • If you agree to some type of millage limit then this will usually mean that you are entitled to some type of discount. Many people drive under the limit for this type of discount, but they fail to ask for it.
  • If you have added safety features on your car such as alarms or a steering wheel lock it could mean that you are entitled to a discount. In order to be eligible for this though you will need to be using a device that is approved by the insurer.
  • If you keep your car inside a garage at night then this should also mean that you are entitled to a discount. This is because your vehicle will be viewed as being less at risk of being stolen.

Another thing that is worth doing is to let your current insurer know that you are considering jumping ship. If they think that they are about to lose you they may be willing to offer you a better deal.