How Much Coverage Should I Have in My Auto Insurance Plan?

Auto insurance, much like health insurance, can be confusing.  How much coverage do you need in each area?  Should you get full coverage or liability insurance?  How much is too much to pay for car insurance in Boston?  You'll have to answer these questions before you can get an auto insurance plan that fits your needs.  Many people find it confusing, so don't worry; talk with your auto insurance agent and they can help you answer all these questions and more.

The first step to finding the right auto insurance for you is to shop around.  Get quotes from every auto insurance company that you can.  This will give you a good idea of how much you're going to pay for your auto insurance.  The prices will vary from company to company, but so will the coverage. Before you choose an auto insurance company, make a list of your leading candidates, then get down to the details.

First, you'll need to know if you want liability or full coverage.  Full coverage insurance is always the best idea, but it will cost you more.  Most states require full coverage on vehicles that are not paid off, so you might not have this option.  Most states also have a minimum amount of coverage required on all vehicles.

Once you've determined what type of insurance you want, it's time to discuss coverage with your potential auto insurance companies.  If you have a lot of assets, you should probably get enough auto insurance to cover them all, in case you are sued after an accident.  If you don't have enough auto insurance to cover all of your assets, you may end up losing them in the lawsuit.  You'll need to decide how much collision coverage you want to keep and how much bodily injury coverage you need.  If you're in an accident through your fault and the injured person's medical bills exceed what you have in bodily injury, they can come after your assets.

The best rule of thumb when buying auto insurance is to let your financial situation be your guide.  Make sure you have enough coverage that you're comfortable, but don't overpay for services and coverage that you don't need and will likely never use.

Dana Hartman, from Boston, Massachusetts, had to buy a new auto insurance policy.  She shopped around with some of the big name, national insurance companies and could not find a rate that suited her.  She kept shopping around and eventually decided to go with a local auto insurance company out of Boston.  They offered the coverage she wanted at the rates she needed.

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