How Much Car Insurance Coverage Do You Need?

September 10th, 2015 by Shawn Reynolds in Auto Insurance No Comments »

Buying the right car insurance at the right price is one of the most important financial decisions you’ll make this year.

You never know what’s going to happen and accidents do occur no matter how careful you are as a driver. Of course, just because you want to be fully protected does not mean that you have to pay an arm and a leg. One way you can minimize your auto insurance costs is to make sure you aren’t paying for things you don’t need.

How Much Car Insurance Coverage Do I Need

So how do you know how much car insurance you really need? Here are a few questions to ask:

  • Do you have health or disability insurance? If you already have an existing health or disability insurance through your employer or through a policy you personally purchased, then there is no need to go all out on Personal Injury Protection. Buying the state minimum coverage would be enough.
  • Do you still make payments on your car? If you are still making payments on your car, there is a possibility that you would also need a Comprehensive and Collision coverage on top of your Liability coverage.
  • How much can you pay out of pocket? Think about how much you usually have in your bank account. Is there an amount that you could afford to pay should you get into an accident now? Think about how much the damages in an accident usually costs, and the difference should give you an idea how much you need to leave to your insurance coverage.
  • What vehicle are you driving? You may want to set your coverage limits based on the kind of vehicle you drive. Larger vehicles, like SUV’s, often cause more damage, so you would definitely need a larger limit.
  • Is everybody in your house driving your car? If there are family members that have a license, but never really drive your car, then there’s no need to worry about them. It’s okay to leave them out of your policy.
  • State minimum coverage or full coverage? The state minimum coverage gives you the basics, but could leave you unprotected against a lot of scenarios. However, this is also better than the next option for those with a limited budget, which would be not to have any coverage at all. A full coverage would ensure that you are protected against any possible scenario.

These are some of the things that you need to know to find out how much car insurance you really need. If you’re still confused on what kind of insurance you need and how much coverage to get, it’s better to call an agent and get the most fitting coverage for your needs.


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Shawn is the CFO and Co-Founder of Signature Insurance Group. In addition to his being raised in a family whose involvement in the insurance industry stretches back six generations, he has personally been in the business since 1999.

Shawn enjoys spending time with his wife, Holly, and three sons, Braxton, Hudson, and Maddox.

Shawn can be reached at

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