A Guide To How Much Car Insurance You Really Need


Have you recently bought a vehicle? Are you wondering if you need car insurance and for how much? The answer is, you do need car insurance to protect you in case  like accidents or natural disasters. Most people know about health and life insurance but do not research car insurance as much.

If you have a car and  car insurance should be a priority. Before purchasing car insurance online, you have to know the different types of car insurance.  How much you may need to pay and what coverage best suits your specific needs. This article sheds a light on these things

Car insurance is a contract between you and your insurance provider protecting you from any losses after an accident.   Car insurance companies offer different coverages

The car insurance provider pays for any damages after the accident. There are over 6 million car accidents per year according to the National Highway Traffic Safety Administration.  Car insurance protects you from potential accidents that you may not be ready for

Car Insurance Terms

It’s important to be well-acquainted with the different terms of car insurance when looking for online car insurance and they include;

Car Insurance Premium

This is the amount that you pay for your insurance coverage. You may be required to pay monthly, quarterly or annually depending on your insurance provider. The premium may vary or change depending on your age, deductible, type of insurance, driving history or more


This is the portion of the damages you are required to pay before your coverage comes in to cover the rest

Fault and No-Fault Insurance

There are 12 states with no-fault insurance and this insurance is typically where insurance companies compensate its policyholders regardless of who is at fault in the accident while fault insurance is where each person who was at fault for the accident bears the liability for damages and injuries and it’s also referred to as a tort-based system

The Coverage Limit

This is the minimum amount your insurance providers will pay for the insurance coverage meaning that if you exceed the limit, then you will have to pay for the remaining costs

Car Insurance Coverage Categories

Car insurance is made up of different coverages that protect you in different circumstances and not all of them are always required. They are;

  • Liability Coverage: This is the most common type of coverage and it covers damages for injuries and damages to property after an accident if you’re legally responsible for it. It consists of two types of coverages which are Bodily Injury Liability and Property Damage Liability. The former covers the injured party’s injury-related expenses like medical bills, lost wages or more. While the latter covers the expenses incurred for the damages to another person’s home or property
  • Personal Injury Protection(PIP): which covers the medical expenses of you or your passenger after an accident
  • Uninsured and Underinsured Motorist: coverage which covers the costs incurred after an accident where the person at fault is uninsured or has minimal coverage
  • Collision: This covers the costs for repairs to your vehicle after an accident
  • Comprehensive:  which covers the expenses that result from your car being stolen, vandalized or due to natural disasters

There exist other coverages that you may opt for which are roadside assistance, umbrella insurance, pay-per-mile coverage, mechanical breakdown and more according to your preferences

Why You Need Car Insurance

It’s extremely important to have online car insurance for extra protection in times of accidents and natural disasters. You need car insurance because of the following reasons among others;

  • For financial protection, purchasing car insurance online can protect you from future catastrophes and the burden of paying for damages since your insurance company will pay for it saving you from having to pay large sums of money
  • It is a legal requirement. Laws vary from state to state and what is required in one state is not necessarily the same in another. However, most states require drivers to carry at least liability coverage. Other states require every driver to carry insurance and if they fail to, they won’t be compensated for the damages

Failure to Have Car Insurance

Driving with car insurance in place is a requirement in most states and failure to do so can lead to many consequences both financial and criminal. If your car is uninsured and you lend it to someone, you are putting that other person at risk. As this point they be driving a car without car insurance

If you are stopped by a police officer for a traffic violation and you are found not to possess car insurance, you may get a ticket for not having car insurance as required by every driver. The officer may  ask for your car to be towed depending on the laws and regulations of your state.   You may be required to appear in court to enter a plea

The penalties may vary from state to state. Therefore it is  better to have car insurance to avoid all of the consequences that may ensue later on. If car insurance is costly for you, you may search for cheap car insurance online by shopping around. Compare quotes to get the best price to suit your needs


Quotes Pilot content is not written by a licensed  insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for your situation