How much do you want? If you have present and future assets to protect, you will want liability limits in amount to cover them in the event you are sued. Limits of liability in an auto insurance policy are typically available up to $1,000,000. If you are less concerned about protecting your assets and/or are looking only to meet the requirements of your state, limits as low as $10,000 or $20,000 are available at lower cost. If you have no medical insurance or a medical insurance plan with higher deductibles and/or high co-pays, you may want to consider adding medical coverage to your auto insurance policy, often available up to $100,000. If your car is other than a classic or collecteble car less than 10 years old you may want to include collision coverage for damage incurred in an accident and comprehensive coverage for other types of physical damage, both subject to a deductible you pay 1st, ranging from $0 at higher cost to as high as $5,000 for lower premium. Should and want are different for different people, so consult your insurance professional for a plan that's right for you.
Self-employed Employee Benefits Provider, Upland, California
How much auto insurance is enough?
I once heard a story from a gentleman that may answer your question. He told me about an accident he had when he was younger. At the time of the accident he didn't own much and had very little in savings, so he was taking a chance by owning and driving a car without insurance. He figured sice he didn't own much and since the car was an old oil burner, he didn't need it. Then one day he was in a hurry and was trying to beat a yellow traffic light before it changed to red, when he clipped the front end of another car coming through the intersection in front of him. He said that when he came to, he checked himself out, then searched for the other driver. When he found that both he and the other driver were uninjured, he was thrilled. As he looked around more closely he found himself inside a building specifically a liquor store and was right in the middle of the Scotch aisle. When the dust settled the other driver had claimed only $15,000 to replace his car.... but the store owner sued him for over $500,000 in damages to his store and contents. The judge awarded a total of $515,000 in a damage award and the old gentleman told me he was still working to pay off the judgement now 10 years later.
The answer to your question is buy as much coverage as you can afford. Don't be fooled by some auto insurace brokers when they try to sell you the state minimums as you could be paying for that cheap policy in the years to come!
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I once heard a story from a gentleman that may answer your question. He told me about an accident he had when he was younger. At the time of the accident he didn't own much and had very little in savings, so he was taking a chance by owning and driving a car without insurance. He figured sice he didn't own much and since the car was an old oil burner, he didn't need it. Then one day he was in a hurry and was trying to beat a yellow traffic light before it changed to red, when he clipped the front end of another car coming through the intersection in front of him. He said that when he came to, he checked himself out, then searched for the other driver. When he found that both he and the other driver were uninjured, he was thrilled. As he looked around more closely he found himself inside a building specifically a liquor store and was right in the middle of the Scotch aisle. When the dust settled the other driver had claimed only $15,000 to replace his car.... but the store owner sued him for over $500,000 in damages to his store and contents. The judge awarded a total of $515,000 in a damage award and the old gentleman told me he was still working to pay off the judgement now 10 years later.
The answer to your question is buy as much coverage as you can afford. Don't be fooled by some auto insurace brokers when they try to sell you the state minimums as you could be paying for that cheap policy in the years to come!