What’s The Best Car Insurance Policy For You?
Buying car insurance and comparing car insurance quotes can be intimidating.
How can you wade through all the insurance industry jargon to find the best policy to fit your needs without spending too much?
At The Resource Center, our friendly insurance experts and brokers 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 might guide your insurance purchase decision.
#1: What’s Your State Minimum Liability Requirement?
All Missouri drivers are required by law to carry motor vehicle liability insurance. Driving without insurance is illegal, not only in Missouri, but throughout the United States.
“Liability” insurance covers the cost of a crash where you are the at-fault driver. You must keep vehicle insurance on hand 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 the at-fault party in a crash. It includes per-person and total bodily injury and property damage liability coverage.
- Uninsured/underinsured coverage protects you in the event of an accident involving an uninsured or underinsured driver.
- Personal injury insurance covers medical expenses incurred by you and/or your passengers. This 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, insurance discounts, and the overall best policy for you.
- Newer cars may benefit from higher collision and comprehensive coverage than older vehicles. If you have an antique car, you might choose to look for tailored classic car insurance policies. Similarly, you may want to ask your insurance professional about situations that could be covered through “gap insurance.”
- 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 car insurance policy with a higher deductible and lower rate. If you have a less-than-stellar record, consider higher coverage limits or other high-risk driver insurance options.3
#4: Do You Qualify for Any Discounts?
Qualifying for discounts will help you (and your budget) achieve more-affordable car insurance rates. Besides discounts for accident-free driving, here are a few other potential savings you’ll want to ask about:
- Low mileage
- Winter storage
- 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 and need help comparing car insurance quotes, or if it’s time to update your existing coverage, contact The Resource Center today. We’ll answer any questions you may have and make sure you are getting the protection you need.
Starting the search for car insurance quotes? Get a quote here.
Investment advisory services offered only by duly registered individuals through (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