Auto Insurance: How Much Is Enough?

American Financial solutions Insurance waterbury

Every state in the US has a minimum amount of car insurance. However, this is not to mean that the limits will be enough. Knowing how much is enough takes a professional that will assess your risk factors.

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At American Financial Solutions, we have professionals with experience in underwriting auto insurance policies. We will help you figure out the best auto insurance providers as well as the best premium for your auto insurance policy.

Most clients ask us for state minimum policies because they are cheap, but this ends costing those more in terms of the deductibles and other associated costs. In this article, we look at how much auto insurance is enough for you. 

How Much Is Enough?

How much auto insurance is enough depends on the area of residence. Some states have a much lower minimum and only requires motorists to have liability insurance, which covers the third party from property damage and or property damage if you were at fault.

With that said, you will need other types of insurance or increased premiums if you want your car insured for the ensuing damage. To know how much auto insurance you need, consider the minimum amount of car insurance in your state of residence and an auto insurance policy that pays:

  • Up to $100,000 for medical bills for the persons you injured
  • A $300,000 cap per accident
  • Up to $100,000 for repairing the other motorist’s car and property

If you do not understand what this means, contact American Financial Solutions today. One of our professionals will take you through the information at a comfortable pace. You could also look into how to get 

Enough Auto Insurance to Drive Legally

When considering whether you have enough auto insurance, consider whether your preferred state car insurance policy meets the minimum requirements. You can get this information from the state’s website or local government offices. You could also contact American Financial Solutions to guide you on the minimum requirements for each state car insurance policy.

Enough to Avoid Financial Ruin

The other factor you need to consider is the possibility of financial ruin in case of an accident. This could be as easy as buying the minimum coverage in your state. However, it can be complicated depending on your driving habits and the accident rates in your area of residence.
This calls for you to consider other types of insurance including:

  • Liability auto insurance
  • Rental insurance
  • Physical damage car insurance
  • Personal injury or No-fault protection
  • Underinsured/uninsured motorist coverage

Review Your Needs

Most motorists settle for the bare minimum. While they are motivated by the low price, it ends up being more costly in case of an accident. We encourage our clients to review their insurance needs as a way of getting auto insurance discounts and better value for money. 
Here are a few pointers to help you along the way:

  • Study your current insurance policy and identify the things you do not need
  • Get several quotes from different agents, and companies 
  • Ask around for the factors that determine the amount in premiums you will pay
  • Monitor your driving needs and behavior

Final Thoughts

How much auto insurance you need is a relative question without a definitive answer. Assessing your needs before you make the purchase and identifying reputable and professional insurance and financial agencies.
American Financial Solutions is one of the leading insurance and finance agencies in the U.S. We have helped millions of people find the right amount and cover for their auto insurance policies.
Contact us today for a free and non-obligatory quote.

Keywords

  • Auto Insurance
  • Car insurance 
  • Auto insurance policies
  • State car insurance policy

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