What’s The Best Car Insurance Policy For You?

 In Insurance Advice, Productivity, Tips

What’s The Best Car Insurance Policy For You?

Buying car insurance can be intimidating.

How can you wade through all the jargon to find the best policy to fit your needs without spending too much?

At The Resource Center, our friendly insurance experts understand that one size doesn’t fit all when it comes to auto insurance. We’ll answer your questions and carefully explain your options to help you choose a policy.

Here are some key considerations that will guide your decision.

#1: What’s Your State Minimum Liability Requirement?

All Missouri drivers are required by law to carry motor vehicle liability insurance.

Liability insurance covers the cost of a crash in which you are the at-fault driver. You must keep vehicle at all times and show it when pulled over by law enforcement officers. You are also required to present your proof of insurance when registering your vehicle or renewing license plates.

Here are the minimum coverage amounts in Missouri:

  •     Bodily injury liability per person: $25,000
  •     Bodily injury liability total: $50,000
  •     Property damage liability: $10,000
  •     Uninsured motorist coverage: $25,000 bodily injury per person
  •     Uninsured motorist coverage: $50,000 bodily injury per accident1

#2: What Kind of Coverage Do You Need?

There are additional types of auto insurance coverage that you may need, besides the minimum liability coverage required by law.

  •     As noted above, liability coverage pays if you’re at fault in a crash. It includes per-person and total bodily injury and property damage liability.
  •     Uninsured/underinsured coverage protects you in the event of an accident involving an uninsured or underinsured driver.
  •     Personal injury covers medical expenses incurred by you and/or your passengers, and may include lost wages if you have to take off from work while recovering from injuries.
  •     Collision insurance pays for repairs to your car from an auto accident.
  •     Comprehensive insurance covers non-accident related risks such as theft, vandalism or weather damage such as wind or hail.2

#3: What Are Your Driving Habits?

There are many aspects of your personal driving activity that will help determine both your insurance rates and the best policy for you.

  •     Newer cars may benefit from higher collision and comprehensive coverage than older vehicles.
  •     If you commute through heavy traffic every day, you’ll want more coverage than if you only drive 1 or 2 times a week through light traffic.
  •     More accidents happen in dense, urban areas than in rural areas, so where you live may affect your insurance rates and the type of policy you choose.
  •     If you normally keep your car in an enclosed garage, you may pay a different rate than if you park in a public parking space.
  •     If you have a good driving record, with few or no accidents, you may want to look for a higher deductible and lower rate. If you have a less-than stellar record, consider higher coverage limits.3

#4: Do You Qualify for Any Discounts?

Besides discounts for accident-free driving, here are a few other potential savings you’ll want to ask about:

  •     Low mileage
  •     Winter storage
  •     Professionals
  •     University degrees
  •     Occupation and association membership degrees
  •     Environmental friendliness discounts
  •     Retiree discounts
  •     Student discounts4

#5: What Is Your Financial Situation?

How much could you afford to pay out of pocket if you had a car accident? If you have a healthy emergency fund built up, you may be able to lower your premium by raising your deductible.

Also, remember that the minimum liability requirements are rarely enough to cover the entire cost of an accident, and the injured parties could go after your assets if the bill exceeds the limits of your coverage. This may include your bank accounts, retirement savings and even your home. If possible, it may be wise to get liability coverage equal to the total value of your financial assets.2

If you’re ready to purchase a new auto policy, or if it’s time to update your existing coverage, contact The Resource Center today.

We’re here to answer your questions and make sure you get the protection you need.

Sources:

1: https://dor.mo.gov/drivers/insurinfo.php.

2: http://guides.wsj.com/personal-finance/insurance/how-much-car-insurance-do-you-need/.

3: https://www.esurance.com/info/car/the-right-amount-of-coverage.

4: https://www.thebalance.com/auto-insurance-101-2645575.

Investment advisory services offered only by duly registered individuals through LLC (AEWM). AEWM and The Resource Center are not affiliated companies. This content is designed to provide general information on the subjects covered. It is not intended to provide specific insurance advice and should not be construed as advice designed to meet the particular needs of situation. 168167

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