How Much Car Insurance Coverage Do I Need?

Determining the right amount of car insurance coverage depends heavily on your individual situation, driving needs, and financial circumstances. Here are key points to consider:

State Minimum Requirements: At a minimum, all drivers must carry bodily injury and property damage liability coverage that meets their state's legally mandated limits. This basic coverage helps pay for injuries to others or damage to their property if you cause an accident.

Beyond the Minimum: While state minimums satisfy legal requirements, they may not be sufficient to fully protect your assets in a serious accident. Policy options with higher liability limits offer more protection. Additionally, other optional coverages protect you and your vehicle directly.

Personal Factors: Carefully consider your budget, your tolerance for financial risk (e.g., how much you could afford to pay out-of-pocket), and the value of assets you need to protect when deciding on coverage limits and deductibles.

Discuss Specific Coverages: It's important to understand what different types of coverage address. When speaking with your insurance representative, consider asking about coverages based on what you want to protect:

• To cover repair or replacement of your own vehicle: Ask about Collision Coverage, Comprehensive Coverage, New Car Replacement, and Gap Insurance.
• To cover towing and onsite roadside services (like jump starts, flat tire changes): Ask about Roadside Assistance options (Note: This coverage is often included or enhanced through your AAA Membership level).
• To cover a rental car while yours is being repaired after an accident/incident: Ask about Car Rental Reimbursement Coverage.
• To cover your own medical expenses after an accident/incident: Ask about Personal Injury Protection (PIP), Medical Payments Coverage, and Uninsured/Underinsured Motorist Bodily Injury Coverage.
• To cover accident-related expenses if the driver who caused the accident has no insurance or inadequate coverage: Ask about Uninsured/Underinsured Motorist Coverage (both Bodily Injury and Property Damage).

Get Expert Advice: Choosing the right combination of coverages, limits, and deductibles that fits your needs and budget is best done with professional guidance.

To review your specific situation and get personalized advice on building the right policy, please contact your AAA Insurance Agent.