Enough is Enough: How to Get the Right Amount of Car Insurance

cheap car insurance

At Rate Digest, our goal is to help drivers get the most affordable auto insurance available. Our unique comparison tool gives you the opportunity to shop around and make the insurance companies work for your business. After all, protecting your second-largest investment shouldn’t be a mindless purchase.

The question is this: how much car insurance do you really need? We recently discovered a great article by BankRate.com entitled with that very question. The answer is found through several additional questions to ask yourself, including “What insurance is required?” and “Do I want other add-ons?”. Reading through these questions and a concise list of car insurance rules of thumb will reveal just how much/what type of insurance you should be looking for. Required insurance, for example, varies by state. We highly recommend researching your state’s requirements and laws.

Remember, regardless of insurance type, your own financial and driving situation makes a big difference in the overhead cost. One overwhelming factor is your risk tolerance, or how much you can afford to personally pay in the event of an accident. This, along with your age, driving record, potential discounts, and the car you drive will determine a large percentage of the monthly bill.

In the end, we highly recommend reading Bankrate.com’s wonderful article. After reading, you will be well-informed about liability, uninsured driver, collision, and comprehensive insurance, as well as certain state requirements. If you’re looking to simply lower your current policy, don’t forget to shop around using our easy comparison tool.