How Much Auto Coverage Should I Consider?
Auto Insurance only provides coverage up to policy limits — beyond that, you're personally responsible for damages related to any accident you cause. This is a key consideration, especially if you have assets you want to protect.
Here are a few factors to consider — and some things to keep in mind — as you choose auto coverage limits:
Third-party liability coverage: Your assets and income
Third-party liability coverage pays damages you cause to others in a covered loss — up to the policy’s limits. When selecting those limits, it’s important to know the value of assets you want to protect. Add up the value of everything you own: your primary and vacation homes, savings and investments, cars and recreational vehicles, and any collectibles. Ideally, choose liability limits that are high enough to protect the total value of these assets.
Comprehensive and collision coverage: The value of your vehicles
If your car were damaged or totaled, would you have the financial resources to pay the costs of repair or replacement out of your own pocket? If not, consider taking out comprehensive and collision coverage. If you lease or finance your vehicle, your lender may require these coverages.
Gil Weiss trains sales teams at dealerships for nearly every major automaker in North America.
We interviewed Weiss to seek out tips on how to negotiate with a car dealer to achieve maximum savings.
Read the story: New Car Tactics that Could Save $100s (or $1,000s) on Your Next Deal
© 2018 Farmers