How Much Insurance Should You Carry?

What is the right amount of vehicle insurance that youComprehensive covers your truck, van or automobile
should carry? All agents will tell you to buy as much asand sometimes the other vehicles involved, for
your budget will handle. Well, that may be good for thedamage or injury done in a non collision situation. For
agent and his or her company, however it may not beexample, comprehensive insures you against auto
good for your or your budget. The standard rule oftheft, damage by flood or fire or collisions with animals.
thumb is to buy only what you need since, you mayThis type of coverage pays for repair of your vehicle
never utilize the coverage in the first place. But how doless your deductible. In order to keep your premium
you know what coverage you need?low you may want to pay as high a deductible as you
There are several factors to consider before buying acan afford out of pocket.
policy. First, find out what is required by law in the stateCollision takes care of damage to your truck, van, or
where you live? Second, what does minimumcar, in the event of a collision with another vehicle or
coverage actually cover? Next, what other coverageobject such as a tree or wall. This kind of coverage is
is available and can you afford it. Finally, what are youexpensive, usually double the cost of carrying
protecting? Most states mandate that all drivers carrycomprehensive. It is recommended for drivers who
liability insurance when behind the wheel. This isdrive new cars. However for older autos, consider
coverage that pays for damage and injury to thedropping this coverage if you have it, or don't sign up
other driver. It does not pay for the damage to yourfor it in the first place. Also consider carrying a high
car or to your person. No state requires a motorist todeductible under this coverage as well.
cover himself.