It can be difficult to determine what type of coverage you need when selecting car insurance. However, understanding your state law requirements as well as a variety of other factors should make it easier. Selecting the right type of auto insurance policy is a personal decision. It should be based heavily on state requirements as well as your lifestyle and vehicle.
What is Legally Required?
The San Marcos Insurance Group serves Chandler, AZ and understands that selecting a policy that meets state requirements is the first priority. Arizona state requirements include Bodily Injury Liability Coverage for no less than fifteen thousand dollars per person and thirty thousand dollars per accident. The requirement for Property Damage Liability Coverage must be at least ten thousand dollars. When you’re shopping for the right auto insurance policy, your first concern should be meeting all your state minimums. After that, you can add other options to your policy to meet your personal and lifestyle needs.
How Much Coverage Do I Need for My Car?
Not all cars require full coverage auto insurance. Generally speaking, if the yearly cost of full coverage cost more than ten percent of the value of your car, you probably don’t need full coverage. In fact, liability may be all you really need. However, if you have a newer car or the value of your car exceeds ten percent of the cost of full coverage insurance, you should probably invest in it. In fact, if you are currently paying for your car and have a lien holder, a full coverage policy is usually a requirement.
What Factors Affect Your Insurance Policy?
In addition to state requirements, your car’s value, and lien holder requirements, specific details about your car can affect how much you pay for car insurance. Your car’s mileage and the age of your car often impact how much insurance you need as well as how much you will pay for coverage. Other factors include your credit, driving, record, and safety options like airbags. Your insurance agent will go over each of these factors in detail.
How Do You Personalize Your Policy?
Your lifestyle will also play a role in how much coverage you should get and how much it will cost. For example, if you don’t drive very often, or drive under 12,000 miles a year, your policy may cost less. Your cost will also be determined by how you use the car. If your car is used for a business in addition to personal use, there may be more coverage required. Typically, older cars with higher mileage require less insurance simply because the cost of replacing them if they are totaled, usually exceeds the value of the car.
Investing in an automobile policy should include all the state required minimums in addition to any other additional coverage that suits your vehicle usage. The type of coverage you select should be based on your lifestyle and preferences as well. For example, If you drive more than 12,000 annually, you need a policy that will reflect this. There are other personal details that should be considered when selecting a policy that will suit your needs. The best automobile policy for your particular situation will include your states insurance requirements and coverage that fits your car and lifestyle needs.