How Much Car Insurance Do You Need?

Car Insurance

Purchasing the proper car insurance after getting your auto financing loans approved can help save you time and money if you experience a serious accident and need a car accident attorney. If you are planning to get a Vehicle Insurance Plan, you should remember that the amount of car insurance required varies by individual depending on the value of their assets. In other words, an auto insurance policy is highly dependent on each individual’s financial situation, so it’s important to determine how much car insurance you’ll need. To chose carefully the car you want to buy, we recommend this used car buying guide.

What is liability insurance?

Liability coverage is responsible for repairing damage or treating injuries that you’re at fault for in an accident. According to a personal injury lawyer, the two main types of liability insurance are body injury liability and property damage liability, but if there were no injuries involved then all you need to worry about is hiring commercial vehicle wreck attorneys. While body injury liability covers medical expenses you may also need to hire a personal injury lawyer too and lost wages for others injured by an accident you caused, property damage liability pays to repair other individuals’ vehicles and property. If you are ever injured in an accident, then you definitely need to hire a personal injury attorney.

According to a motorcycle accident lawyer, when a driver is sued for an accident, liability insurance protects their assets from being sold. A motorcycle accident attorney helps out people settle personal injury cases and other situations revolving the accident. However, in some cases a personal injury lawyer from an experienced law firm like the ones at can help you get enough settlement out of the accident if you were not the one at fault. For those who are involved in an accident and need a quick fix, go to an auto repair shop like this BMW service in Raleigh for repairs like a windshield replacement and/or auto glass replacement, performance checks, or a wheel alignment.

Other types of insurance

Most states require car insurance policies to cover more than liability. There are multiple other types of coverage, which can help pay for injuries and treatment at an auto accident injury chiropractor or lost wages following an accident regardless of fault. For instance, personal injury protection insurance pays for lost wages and minor injury treatment to those who were at fault for an accident.

Another type of coverage, medical payment coverage, is often limited to below $10,000 and can help pay for the at-fault driver’s injuries. It’s important to keep in mind that medical payment coverage only covers injuries stemming from an accident. For instance, if you suffer from poor eye health, you’ll need to supply proof that it was caused directly by the accident in order for compensation. Although $10,000 may seem low, your local health information exchange organization can help you find high-quality, low-cost healthcare providers in your area after sustaining injuries in an accident. With a lot of money online you may want to hire a motorcycle accident attorney to secure yourself that insurance.

Choosing limits

The amount of liability insurance you need is dependent on the assets you need to protect. If you don’t have any assets to protect, you can afford insurance with low limits on liability coverage. However, if you’re a homeowner with savings, you’ll need liability insurance with limits high enough to cover their value.

In order to determine the value of your assets, add the value of your home, cars, savings, and investments. Next, subtract your debt to calculate your net worth. Your total bodily injury limits should, at minimum, match your net worth. Car or auto insurance limits typically come in increments between $50,000 and $100,000, so find a company with limits slightly above your net worth. If you need help choosing limits, get a truck accident lawyer to guide you through the numbers.

Excess liability insurance

Most companies set a maximum for the amount of coverage you can buy on a car insurance policy. Typically, maximum limits are $250,000 for injuries per individual, $500,000 for total injuries per accident, and $100,000 for property damage. If you need more coverage, consider purchasing excess liability insurance. Excess liability insurance, also known as umbrella insurance, can help pay for costs that exceed limits on your insurance policy.

Although purchasing excess liability insurance often requires buying the maximum coverage offered by an insurance company, excess insurance is relatively inexpensive. According to the Independent Insurance Agents and Brokers of America, a $1 million to $2 million policy can cost less than $400 a year.

If you have any questions regarding insurance coverage, don’t hesitate to contact a local personal injury lawyer or insurance agent. To find a nearby personal injury firm, conduct a simple location-specific Google search, like “personal injury law firm toronto.” All in all, buying car insurance can seem stressful, but purchasing the proper coverage can go a long way in protecting your assets after an accident.

Image Credits: Car Insurance from Freedomz/Shutterstock