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Almost all the states in the United States have laws on the amount of car insurance a motorist should carry. While it is important to have your state's minimum insurance requirements, there are other ways to determine the amount of coverage suited for you.

Remember, if your car is damaged by vandalism, a natural disaster, or an accident, the cost to repair or replace it can be high if you aren't adequately insured. The main criteria you should use when buying insurance are identifying the mandatory coverage, reviewing full coverage features, and valuing your car. 

What Is the Mandatory Coverage?

In most states, motorists are required to carry two types of coverage: bodily injury and property damage liability. These don't account for damage to your car or personal property.

Bodily injury liability pays for injuries you cause to others. On the other hand, property damage liability covers damage you cause to another person's property. This includes other vehicles and personal property like mailboxes and fences.

What Is Full Coverage?

Many motorists buy full coverage because it fills the mandatory or minimum coverage gaps. Full coverage means including collision and comprehensive coverage to your insurance policy. Collision insurance addresses damages to your vehicle in case you collide with another car or object.

Comprehensive coverage accounts for damages caused by vandalism, theft, storms, fire, and hitting an animal. These coverage types require separate deductibles. If you bought your car with a loan or you have leased your vehicle, your lender will ask you to buy collision and comprehensive coverage.

What Type of Car Do You Have?

When determining the amount of insurance you need, it is advisable to value your car. A brand-new car will need more insurance than an old car inherited from your grandparents.

Therefore, for a new car, you should add comprehensive coverage for protection against vandalism, fire, flooding, natural disasters, and theft. You should also consider gap coverage. This coverage replaces an old or newer vehicle with a new car in case it is totaled.

If you have an old car that isn't worth a lot, there is no need for collision or comprehensive coverage. This is because the policy will not pay more than the car is worth during an accident or loss. However, if you lease a car, you should buy full coverage.

In Closing

Shopping for insurance doesn't involve going to the first insurance provider you come across. You must research widely to determine the right insurance based on your personal needs and potential risks. Ensure you compare the packages and quotes of different insurers to find the insurance provider that is most suited for you.

Reach out to an auto insurance company to learn more.