How Much Car Insurance Do We Need? 
In order to operate a car in most states you must meet minimum financial responsibility limits . These are normally represented by insurance with specific bodily injury and property damage liability coverage . While this satisfies the state requirement it is not sufficient in many accidents . The company is only responsible to meet the amount of coverage provided . If your limit was $ 30,000 of liability coverage and you hit a van carrying two children and both of them required ambulance service to emergency and were seriously injured , your limits would be exhausted in the first few days . The remaining expenses will probably appear as a law suit against you and any assets that you might have . Your lender will require that you maintain physical damage insurance on your car . In fact , they retain the right to purchase a collateral protection certificate which is something like insurance and pass that cost directly to you if you fail to maintain coverage . The lending company will give you latitude as to how much deductible you can select but they want to make sure that their interests are protected . The most important thing to understand is that the cost of an insurance policy is best determined when you have a claim . If the policy doesnt cover the damages , it was too expensive . Select well because it can make a substantial difference when you experience a claim . When you meet with an insurance agent to select coverages it is best to choose an agent who will listen to you , provide sound financial advice and communicate clearly with you and the insurance company . Setting limits is a critical issue . The agent should tell you the maximum amount of liability insurance that he can provide in your situation . You should start with this maximum number because a lawsuit can cause serious damage to you financially . If you can afford the additional premium you could even consider an umbrella policy to extend further the liability limits . Often property damage liability limits are separate . Many cars cost in excess of $ 50,000 and in the event of a multiple car accident exceeding $ 50,000 is possible . Take as much coverage as is offered . The agent will then offer you medical payments coverage . Select the highest available limit unless you are confident that you will not have an occupant in your car who is not fully insured for medical care . This coverage will allow you to call for an ambulance and make sure proper medical care is extended to those in your vehicle . Your company will offer uninsured and underinsured coverage . This protects you should you be hit by someone without insurance or someone with inadequate insurance . This situation comes up frequently and this coverage should not be overlooked . Consider a high limit . The company will probably offer an accidental death and dismemberment benefit . That benefit is a form of life insurance when death or dismemberment is the result of an auto accident . It is highly restricted but it is also very inexpensive . Other benefits such as stowing and roadside service provide you with a single point of contact should you have mechanical problems or a collision . Generally these are a good value . 