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Accident Auto Insurance Coverage: How much accident auto insurance policy coverage do I need?

It is always possible to lower your auto insurance rate by choosing a higher deductible, and getting less liability coverage, although often times it just isn't worth the savings. So how much accident auto insurance do you need?

As with all insurance, determining how much coverage you need is determined by how much risk you are willing to take on. Assuming the worst case scenario, that you are in a major accident, how much could you afford to pay out of pocket. Maybe a more appropriate question is how much would you be willing to pay out of pocket? Remember, in the event of a major accident hospital bills, and replacement vehicle costs could be quite extensive.

Bodily Injury Liability
This part of the policy is all about protecting your assets. This will protect you from liability should the driver or passengers of the other car, or the passengers in your car, suffer medical problems arising from the accident. It doesn't matter how good of a driver you are, accidents can certainly happen to good people, and most likely you will not be controlling the outcome.

Bodily injury liability is sold in two parts, per person, and per accident. This means you could get accident auto insurance that covers for example, $100,000 per person and up to $300,000 per accident. How much bodily injury liability you need is really determined by how many financial assets you need to protect. Obviously, the more money you have, the more you could possible loose in the case of a lawsuit, and thus the more you have to protect.

How much you will pay for additional bodily injury liability depends on a lot of factors including age, driving record, location, and marital status. Obviously if you live in a city where bodily injury is more likely to occur, then you will have to pay more than in a rural area. Protect the money you have, and you will sleep better at night knowing that in the case of an accident you are covered by your auto insurance.

Property Damage Liability
This part of the policy pays for any damage to the other persons car and property involved in the accident. There are certain state minimums, some as low as $5,000, but really, how many $5,000 cars do you see driving around. If you get in an accident with a new porsch, you're going to want more coverage. $50,000 per car is the minimum recommended, and $100,000 to be completely safe.

Personal Injury Protection
It sounds funny, but this may be one part of the policy you can cut back on, depending on what other coverage you already have. This would cover the medical or funeral expenses of you and your family in the case of an accident. Check your health, life, and other insurance policies to see if they already contain adequate coverage in this area. If so, then you may be able to remove it completely from your policy.

Uninsured or Underinsured Motorist
This policy is essential, and will cover you and your families medical expenses in the event that you are in an accident with an uninsured or underinsured motorist, which is actually quite prevalent. These policies are quite cheap and well worth the insignificant expense and will pick up where your health insurance leaves off.

Collision and Comprehensive
Collision will cover the cost of repairs or replacement of your vehicle in the event of an accident, whereas comprehensive auto insurance will additionally cover you in case of a natural disaster, theft, or vandalism. This is a significant portion of the cost of your policy, and thus, to lower your rate, increase the deductible to whatever you are willing to pay. Generally the point of insurance is to protect you from losing A LOT of money, not to pay for every little scrape. A $1000 deductible might be acceptable. Also, in the case of a total loss, where your car is completely destroyed, the most you will receive is the kelly blue book value for your car, so don't insure yourself for more than your car is worth.

Extras
Get the full glass coverage which will cover you in case your auto glass (which is expensive) is damaged (which happens easily and often). Others such as towing coverage and rental car coverage are not worth the cost. In the former, you're better off getting a AAA membership which offers more services for the money, and in the latter, chances are 50/50 the other persons insurance will be paying for the rental car.

As always it is best to get auto insurance quotes from multiple companies such as Geico, Progressive, Allstate, Nationwide, and StateFarm. Rates do vary and shopping around for auto insurance quotes can save you a lot of money.