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When it comes to dealing with auto insurance, the less you have the more you will end up paying for any damages or incidents on your own. The more coverage you have, the better chance you will be covered if involved in an accident.
Though there is no firm law about how much insurance coverage a person must have, many states require at least liability insurance at a minimum. However, most companies and agents advice clients not to skimp on coverage because it could make you liable for thousands of dollars. With insurance, you want to remember that it is protection for you, your property and your family, and that less doesn't necessarily mean more.
To decide how much coverage is right for you, look at your surroundings and your daily life. If you live in a larger city where fender benders happen every five minutes or in the country where deer often run across roads at night, it might be best to get more coverage. If taking care of your vehicle is the top priority on your list of to-do items, your insurance coverage should indicate that with lower deductibles and higher coverage limits. If you've recently invested a lot of money into a really nice vehicle, it is best to make your insurance coverage reflect that to protect your investment.
Next, look at your lifestyle. A mother who is always on the go, hauling the kids to soccer practice, parent meetings and ballet lessons, will definitely want enough coverage to protect her children if someone were to run a red light and hit their minivan. On the other hand, if you have only one moderately new vehicle and hardly ever drive at all, there is no need to bump up coverage levels. Basically, a person should have enough insurance coverage that it will take away any worries that with having an accident. There is already enough to take care of if someone hits you unexpectedly, and the amount of coverage you have could make you slightly bothered or completely bewildered.
There is a handful of necessary information which an insurance agent or company must have when deciding how much coverage to give you. When talking to your insurance agent, be sure to provide them with the year, make and model of the vehicle or vehicles you would like to insure, as well as the names of the people who will be driving the vehicle, their ages, and information about their driving record. Additionally, the amount of driving you do, your residence, the Vehicle Identification Number (VIN), and safety features like anti-lock brakes and air bags will also have to be given to the insurance agent or company.
Again, your own driving record will come into play on this aspect too, because your insurance agent will want to know if you are a high-risk driver than other people. The higher risk, the less an insurance company is to take on your business and provide you with coverage. On the flip side, though, there are discounts for being a safe student driver, a good student, or having a good driving record, and if you already have homeowner or life insurance with a company they will most likely offer discounts if a client wants to add auto coverage.