How Much Car Insurance Do Average People Need?

How much car insurance you’ll need as an average driver depends on several factors. At minimum, though, you’ll probably need basic property damage and personal injury coverage of a certain amount, such as $50,000 for property damage, and $25,000 in bodily injury liability. These amounts and specific rules vary state-by-state, so you’ll need to check with your state to determine how much coverage you’ll need to carry.

For a good, safe driver, this type of online car insurance is relatively inexpensive. Keep in mind that this particular type of insurance does not cover your car in any way, only the injury and property damage to the other party in the event you are found at fault in an accident.

Now, onto your car itself. If you drive a new car or a relatively new car (within about two years old), you’ll most definitely want collision and comprehensive coverage on your car. This type of car insurance can be quite expensive, and again the amount depends on where you live and the type of car you drive. The amount of deductible you pay will also affect how much you’ll pay in premiums.

There are two different types of coverage for your car. There is collision coverage and comprehensive coverage. Collision coverage covers damage to your car if you’re in an accident no matter who’s at fault. Comprehensive coverage does not cover accident damage, but it does cover damage that happens when your car is hit by hail, for example, or if it’s vandalized in a parking lot.

You need these types of coverage if your car is new enough that its replacement value makes the premiums worth the extra payout. In other words, if your premium payments will save you money in the event you need your car replaced versus simply buying a new one outright, you should have both comprehensive and collision coverage. However, if your car is old and its replacement value is nowhere near the premiums you’ll pay to have the insurance, you should drop collision and comprehensive coverage. Remember again that collision and comprehensive coverage only cover damage to your vehicle, not the other party’s.

How much you’ll pay foronline car insurance will also depend in part on what the accident incidence is in your area. For example, if you live in a large metropolitan area with lots of traffic, your chances of getting in an accident are much, much greater than if you live in a rural area with very little traffic. Therefore, your insurance rates are prorated on this fact. How much you drive also impacts how much insurance you’ll pay. For example, you have a much greater chance of getting in a car accident in a large metropolitan area where you commute to work back and forth 50 miles one way each day than you do if you live in a rural area and drive relatively little. These are extreme examples, but they illustrate how your insurance rates are calculated.

Now, if you’re a good driver, your rates are going to be much lower than those of a less able driver would be. How old you are also affects how much you going to pay for online car insurance. For example, young people under the age of 25 pay higher rates than older drivers do. Young men under the age of 25 pay the highest rates, since this demographic group has the greatest propensity for accidents and risky behavior.

What it boils down to is this: You should get as little insurance as you possibly can based upon the value of your car and the amount of injury and property damage liability coverage you need for your state. This means that yes, you’ll need comprehensive and collision coverage for a new car, but once the replacement value of your car is worth less than what you’re paying in premiums, you should drop that insurance coverage. However, you do need at least a minimum amount of car insurance based upon laws in your state for both injury and property damage liability. Going online and researching what different insurance companies have to say about your particular profile will help you get the lowest quote possible.

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