rusting away.
What Insurance Do You Need?
The first step to figuring out the right coverage for you is knowing your state’s requirements. However, this is something that will be automatically included in every policy, so you won’t need to worry about this. If you’re curious, I’m happy to answer any questions you have about this. Next, think about what you can afford—both when considering your premium and also what might happen should you become involved in an unfortunate accident. One thing to keep in mind is the age and value of your car. If collision or comprehensive insurance isn’t required by your state and you have an older car, you definitely want to look at the costs. Why? Because insurance companies look at the book value of your car in the current market and will only cover that cost. So, for example, if your car is worth $4000 but needs $7,500 worth of repairs, your insurance company will only cover that $4000 (minus your deductible). All that said, keep in mind the horror story I told above. Since you never know what situations you’ll run into—or that will run into you—having an open discussion about finances with your agent will help you determine what to do about this kind of coverage. There may be other options to consider, as well. Another thing to look at is whether you need medical coverage. It’s not required in many states, and it’s possible your health insurance will cover the same thing. You don’t want to be paying twice for essentially the same thing! There is one exception, though. If you often have people in your car who aren’t in your immediate family—say, if you drive carpool for work, medical coverage will cover them if there’s an accident—something your
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