It is recommended to have at least liability insurance coverage on your car. While this is rarely advisable, it is better than no insurance. It also doesn’t increase dramatically once you’ve reached this minimum level of coverage. For example, the average rate for state-mandated minimum coverage is $574 per year. A higher-risk driver may want to purchase more coverage, such as $50,000 in property damage. In addition, people with expensive cars should purchase more coverage than the state minimum.
If you are worried about liability insurance, you should consider getting collision coverage. This covers damages to another person’s car, including the repair costs. You’ll also need this coverage to pay for medical expenses if someone gets hurt in an accident. Collision coverage is often required by lenders. Comprehensive coverage, on the other hand, covers your car in case of a disaster. You should also have enough deductible for both types of coverage to avoid financial troubles.
Bodily injury liability insurance is required by law in virtually every state. The maximum amount of coverage varies by state, but is typically between 25/50/20 or 50/100. The higher limits can protect you financially in case you are in an accident, but they’re usually not enough to cover the costs. Generally, the higher coverage levels are better. If you have a high-value car, you may also want to consider getting higher coverage levels.