How much is reasonable auto insurance coverage?

How much is reasonable coverage ? To keep costs down, figure out what types of coverage you can avoid entirely and then take just what you need of the essential sections. To give you an idea of how this will work :

1.) Students- If you are recent student here, and driving a  high mileage used car. You should be ok with the state minimum legal limits,which is usually the liability only coverage and some form of PIP in most states. So in an accident event where you are at faulty,you would have to pay for your pocket for fixing any damages to your car.  Buying additional coverage like Comprehensive and Collision will not make sense for you, since the cost of these coverge spread over 2-3 years may come close to the cost of your car.

2.) Worker - If you are a Temporary worker here, you would need a bit more liability than the above and some Comprehensive and Collision in case your car is worth more.This is since in the event of a loss at your fault , you basically lose that car with no recourse. Some specific brands of car are stolen more often. So you might want to consider Theft as well if it is not included.

3.) If just purchased a new car , you would ofcourse want Liability and PIP,.You may want to protect your car or if you financed your car , the finance company might need to make sure their asset (your car) is safe. So you would need Comprehensive and  Collision coverage as well.

4.) If you have Property and assets and lots of savings here you will want a higher insurance coverage for Liability , so that potential accident victims are covered by your insurance than them coming after your assets in the event of a court case or law suit.

You could up your deductible say to $1000 or $2000 (from the $500) for both comprehensive and collision, so a higher bodily injury liability end limit policy will be affordable. If you get a good deal for higher end liability limit policy at $500 deductibles, that should be fine as well. For examples 2 and 3 above you absolutely need to have atleast 100K/300K for bodily injury liability coverage. Amounts like 25K/50K is too low in the US.  50K for property damage should be fine.  Most people can pay an extra $500 should something bad happen, but will be hard pressed , if it is just $50K at the top end.

More so in certain states, where there might be more motorcyclists and pedestrians due to the good weather, you need to have good coverages. You also need to think of getting uninsured/underinsured coverage for bodily injury for yourself at 100K/300K levels. This is usually a very cheap addition. If the additional costs of this worry you, you could do a defensive driver course (call your local AAA), and get more than 10% off your insurance for the first few years.

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