Every state has minimums for the type of car insurance you need (see California’s minimums). If you don’t fall within these minimums then you will be unable to legally travel on the road.
However, minimum limits are never very generous, therefore it is always suggested that you at least up the amount of personal liability insurance you own. If you don’t, you are opening yourself up to being sued for extra costs in even the most minor car accidents.
In addition to liability insurance there are number of other coverages that you should consider adding to your car insurance policy.
Comprehensive Coverage gives you protection for any damage to your vehicle outside of a car accident. This includes fire, theft or any other losses. It is good to note here that hitting an animal would come under ‘Comprehensive Coverage’ rather than your standard liability coverage. When opting to purchase this type of coverage your broker will ask you what deductible you wish to have on your policy. This is basically the amount that you need to pay towards costs before the insurance company will start paying the rest.
This type of coverage will enable you to replace your car in the event of an accident. Again there will be a deductible that you will have to pay in the event of this happening. Make sure to research what sort of deductible you are looking to pay through each car insurer.
Emergency Roadside Assistance
This will enable your car to be picked up on the side of the road in the event of breakdown and either repaired or taken to the local garage.
Purchase this if you own a brand new car, this will ensure you get full value for the car in the event of an accident. This coverage addresses the issue that a new vehicle’s market value plummets as soon as it is driven on the road.
After you have established what type of coverage you require, it’s time to do a bit of research into all potential insurers out there by comparing quotes. Favor those that have good reputations. Don’t always accept the first deal they offer as there may be cheaper deals out there. It never hurts to contact other reputable insurers to see what they have to offer as well.