How Much Car Insurance Do You Actually Need?

Accidents happen- and there is no way of knowing when and how it will occur. So the best way you could have peace of mind is if you could protect yourself and your family from unnecessary stress caused by unforeseen events. Life and health insurance are at the forefront of people’s minds amidst the novel coronavirus pandemic, but what about car insurance? Do you need it? If so, how much do you really need?

Let us take a quick look into statistics. Teenage drivers, aged 16-17 years have high rates of accident involvement. Those aged 80 and above have high death rates. The safest drivers are those between the ages of 65-69. Studies say that there are about 4 car accidents an average person can experience in a lifetime.

Anyone who has been involved in car accidents knows that it is pretty rare to get out of it unscathed. Injuries to the drivers, others and deaths are hard to avoid. If this happens to you, how ready are you to face the situation? Apart from the emotional and physical trauma, are you ready to face the consequences? Here are a few things you need to know about auto coverage.

The most basic type of auto coverage you can carry includes liability, collision and comprehensive coverage. Let us dive into this further.

Liability coverage

The higher the limit on your coverage, the better! If your liability coverage limit is at least $500k in total, both types of liability coverage will be applicable to you – property damage liability and bodily injury liability. How does having liability coverage benefit you? If you are found at fault in the accident, any third party cost you may incur, such as medical bills or repair costs, your liability coverage will cover for you.

Given the statistics provided earlier, injuries, deaths, and damages are expected in car accidents. If you have liability coverage, you won’t have to worry about out-of-pocket expenses. Regardless of the car you drive, opting for liability coverage is an absolute must.

Collision coverage

70 percent of drivers chose to purchase collision coverage. Unlike the liability coverage, this particular plan protects you regardless of whoever was deemed at fault in the accident. The car can be repaired or replaced with no hassle!

Comprehensive coverage

This type of coverage, just like liability coverage, is quite affordable. A comprehensive coverage plan protects you from other causes of accidents such as natural disasters, fire, theft or damage. As long as the accident was caused by a collision of cars, your comprehensive coverage will take care of your car’s repair or replacement.

In order to get the best car insurance, ask for help from those who actually know the ins and outs of these policies. Get an insurance agent to explain your options carefully. There are factors that can influence the kind of policy they would recommend to you, ones that often can lead to discounts for the insured. Don’t forget to provide your insurance agent the following information so as to get the best deal or offer.

  • Your marital status – if you’re married, your premium can be lowered.
  • Car usage – let them know if you’d be using it for business or personal use, regardless of how big or small your business is.
  • Travel plans – advise how often you plan to travel locally or abroad.
  • Home Ownership – you could get a discount if you’re a homeowner!
  • Antitheft devices – let them know if you have these on your car.
  • Paperless statements – opting for paperless statements can get you an additional discount.
  • Occupation – share details about your job role and your spouse’s if they used to work in a government agency.
  • Parking area – parking in a garage can help you get a discount on the comprehensive package.

Your budget will likely play a big role on the car insurance options you choose and that is understandable. The policy you will choose will dictate how your future will unfold. Thoroughly reviewing your options takes time, so don’t rush into a policy. Rather, take a moment to review your options and choose wisely.

About Provident Protection Plus

At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.