Rebecca Stutts Hovater
It’s a common question: How much car insurance do I need? Unfortunately, there’s no black and white answer: It depends a lot on what coverages you need and what kind of deductible you feel comfortable with. (Need a primer on coverages and deductibles?) So let’s try to break it down:
How high should my liability coverage limits be?
No one can predict exactly how much you’d have to pay if you were to cause an accident. But the key question to ask yourself is: Can you or do you want to pay for any damages exceeding your coverage limits? The higher your liability coverage limits are, the more damages your policy may be able to cover.
What should my collision and comprehensive deductibles be?
This is a balancing act. Higher deductibles typically lower your premium, but will increase your out-of-pocket costs if a loss occurs. Ask yourself how much you’re willing and able to pay directly, often on short notice, to potentially save on your premium. If you want to lower the amount you have to pay when an accident occurs, you might want to opt for a lower deductible.
Do I need collision and comprehensive coverage?
There may not be a choice if your car is leased or financed. But if you do have the option, consider whether the savings from dropping collision and/or comprehensive coverage is enough to offset the risk of having to pay the entire cost of repairing or replacing your car.
Learn more about deductibles and coverages.
Rebecca Stutts Hovater, Agent
State Farm Insurance
501 South Montgomery Avenue, Suite C
Sheffield, Alabama 35660
Phone: 256-383-1250
Fax: 256-383-1213
www.RebeccaHovater.com
