There are some important questions to ask yourself when you purchase auto insurance. These questions will help you in determining the type and amount of coverage needed. To assist you in this process, Neff & Associates Insurance Services Inc, serving Pismo Beach, CA, shares some of the most important factors to take into consideration when you are purchasing car insurance.
State Minimum by Law
Each state has its own minimum car insurance coverage that is required. The minimum in the state of California is 15/30/5, which means $15,000 for bodily injury coverage per person up to $30,000, in addition to $5,000 for property damage coverage.
Just because this is the state minimum, it doesn’t mean you shouldn’t purchase additional coverage. There is always the possibility of being involved in an accident that the state minimum car insurance coverage will not sufficiently cover, which would leave you paying out of your own pocket.
Value and Age of Automobile
If you have a relatively new vehicle that was expensive to purchase, you will likely want to invest in full coverage auto insurance, which includes both collision and comprehensive damage coverage. This ensures you’re reimbursed in the event of a loss due to theft or vandalism as well as damage to your vehicle if you are found at-fault. If you have an older vehicle that likely doesn’t have a value that would be returned in the event of an accident, it may be recommended to drop full coverage.
Amount of Risk You Want to Avoid
You will also want to take into consideration how much risk you want to avoid. If you would prefer to protect your vehicle at all costs over saving a little bit of money, you may want to keep your full coverage, lower your deductibles, and increase your liability coverage limits. However, if your overall goal is to pay out as little as possible each month, you may want to only choose liability coverage, lower your liability limits, and raise your deductibles. Just don’t forget to maintain the minimum amount of coverage required in the state of California.
Hopefully, this information has helped you with determining what you need in terms of auto insurance. If you still have questions and need help, Neff & Associates Insurance Services Inc, serving Pismo Beach, CA, can assist you in designing an auto insurance policy that fits your needs and budget. Contact us today!