Salesmen will sell you add-ons at the expense of instilling fear.
- inˈstil verb: gradually but firmly establish (an idea or attitude, especially a desirable one) in a person’s mind.
How much insurance auto insurance do I need you ask yourself late on a Saturday night while you sit alone and broke in front of your phone or computer. Maybe not, but you still ask yourself, how much insurance do I need?
Don’t let the black top hat salesman sell you something you don’t need. Aside from zip codes and other peoples bad driving habits causing your personal auto insurance to increase. Insurance sales representatives will try to spook you with the following jargon and fear mongering to steal even more of your fish (money):
- Liability Coverage: These policies help cover liability and expenses when you’re at fault in and accident. The money will go to the people you hit, but it won’t cover the people in your car. So your friends will still sue you if they’re not really your friends and a lot of the time accidents are simple and the increased rate you spend on high liability coverage could be the difference between $30 and $60 saved each month on your bill. Don’t get to high of coverage, get the lowest possible amount you can buy. If your state doesn’t require it, don’t get it. Accidents happen but they’re rarely over $10,000.00
- Bodily Injury Liability (BIL): This policy pays for the medical expenses of people injured in a crash in which you’re at fault. You’ll often see BIL policies described as a “20/50” policy or a “100/300” policy. These numbers describe the maximum dollar amount the policy will pay for a single person’s injuries and the maximum for all the injuries sustained by all the occupants of the other car. For example, a 20/50 policy will pay a maximum of $20,000 for a single person’s injuries, and up to $50,000 total for the injuries of everyone in the car you hit.
- Property Damage Liability: This policy pays for damage done to the other car if you’re at fault in an accident. Property liability is sometimes referred to alongside BIL as a third number, so a 20/50/10 liability package will cover up to $10,000 for damages to the other car.
- Personal Injury Protection (PIP): This covers your and your passengers’ medical expenses after an accident. If you lose time at work because of your injuries, this policy may also cover lost wages.
- Uninsured/Underinsured Motorist Coverage: This helps cover costs if you are hit by someone without insurance, or minimal coverage.
- Collision: This policy covers repairs to your car after an accident.
- Comprehensive: This policy covers costs if your car is stolen or damaged outside of an accident.
So don’t listen to anything fearful thrown at your by the tall black top hat car insurance salesman. If your like me, I’m more worried about uninsured drivers. Give and take. That’s how you get lower insurance. But don’t make decisions out of fear now that you know what each of these is. Fear is evil.
How much car insurance do you need though you still ask. The minimum possible! Unless otherwise required by law in the state you live in. That’s how much you need. The bare minimum. Enter your zip code below, chose a company and ask questions that’s how you get the cheapest rates. Know what your getting yourself into, ask questions about the things you learn at CAIU and save money on your auto insurance bills.
Still unsure about your state laws? Use the zip code tool, the representatives, use Google or come back here to ensure their answers are 100% accurate. That’s why I’d call a couple of them to cross reference them.