How much car insurance do you need? Well, the amount of car insurance recommended depends on several factors, your state, vehicle’s value and how much insurance you can actually afford.

Types of Car Insurance Coverage

When it comes to car insurance, there are different types to consider:

• Bodily injury liability coverage is an insurance policy covering damages caused to someone else, property and everything else. It covers the other driver’s medical bills,
• Property damage liability covers damages caused to another person’s property.
• Collision insurance covers damages on your vehicle even If you are at fault in an accident.
• Comprehensive car insurance covers non-accident related damages such as hail, theft and fire damages.

Between the four insurance options, liability-only car policy is cheaper and with minimum coverage levels in almost every state. However, cheaper options are not always the smartest.

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Some states have considerably low liability minimums. As a driver, one of the smartest move is to raise your liability levels to a point where you can afford comfortably.

In the event of an at-fault accident, injuries or damage someone else’s property, you’ll be liable for their costs. Divers who lack enough liability coverage to meet such damages will still be held accountable. The court will confiscate your assets and use your salary to pay for damages, so having the highest liability coverage levels is the best way to can protect your assets and future earnings

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