Auto Insurance Coverage,Insurance Policy

While the phrase "less is more" may be true when you're decorating or accessorizing, when it comes to auto insurance, more is less: The more coverage you have, the less it will cost you if you get in an accident. While there's no hard and fast rule about the amount of auto insurance coverage you should have, most states require that you carry only a minimum level of auto insurance coverage.

However, be aware that most auto insurance companies advise against carrying only your state's minimum auto insurance requirements. Why? Because if you're involved in a serious accident, the costs will significantly exceed your auto insurance coverage— making you liable for thousands of dollars out of your own pocket! Don't skimp on your auto insurance coverage. You'll need it to protect you if you're ever involved in an accident.

So, how much auto insurance coverage is adequate? The amount of auto insurance coverage you need depends on a variety of factors. Some factors you should consider when you buy auto insurance coverage include:

    * Your appetite for risk— If you don't like taking risks, your auto insurance coverage should reflect that with high coverage limits and low auto insurance deductibles.
    * Risks associated with where you live— Do you live among wildlife, or are fender benders a common occurrence where you live? If so, beef up on your coverage.
    * Your vehicle— If you have a brand new vehicle, you may want to increase your auto insurance coverage to protect your investment in the event you're involved in an accident.
    * Your assets—The more assets you have, the more auto insurance coverage you need to protect them.
    * Your passengers— Do you regularly have young passengers in your vehicle? If so, get auto insurance coverage to protect them should you be involved in an accident.

For guidance in choosing customized auto insurance coverage, use the Coverage CounselorSM, an interactive auto insurance planning tool. That way, you'll be able to make an informed decision when you buy your auto insurance coverage and you'll get auto insurance designed just for you!

After an accident, especially a serious one, the last thing you want to worry about is how much it's going to cost you. Adequate coverage will make the insurance process that much easier. Typically, higher limits cost only a few dollars more. And if you have an accident, you'll thank yourself for investing in additional auto insurance coverage.