How Much Auto Insurance Do I Need to Buy?

This is one of the most common questions among first-time car buyers. How much auto insurance do I need to buy? The answer, as usual, is that it depends. I'll offer some suggestions on how much insurance in just a moment. But first, let's talk about the different types of auto insurance coverage you can buy.

Liability -- This is the one type of coverage that drivers are required to have by law. Each state has a minimum requirement. So in order to find out how much auto insurance you may need, you'll first need to learn what your state requires in the way of liability coverage. Liability covers other people that may be injured through some fault of your own (their car damage, their hospital bills, etc.).

Liability also provides some degree of coverage for you, in the event that you are sued. You should start here when determining how much auto insurance you need, because this component is mandatory.

Comprehensive -- This form of auto insurance would reimburse you for expenses related to fire, theft, vandalism, or damage to your car from natural causes (hail, lightning, tree limbs, etc.). In other words, it protects you from damages other than those caused by a collision. And that brings us to the next type of auto insurance coverage.

Collision -- This is the part of your auto insurance that covers damages resulting from an accident, when you are the one at fault.

There are other types of coverage you may be offered by an insurance company, but the three listed above are the most common.

How Much Insurance is Enough?

Now that you know the different types of coverage, we can revisit the primary question we started this article with. How much auto insurance do I need to buy? We talked about the minimum coverage you are required to have by law (liability). This covers you and others when you are the one who causes an accident. So this is your starting point when determining how much insurance you need, because it's also a requirement for registering a car in most states. You simply have to have liability, plain and simple.

You should be able to find your state's minimum requirement by doing an Internet search. A handful of states don't have a legal requirement for liability insurance, but most states do. You can do a search on the Edmunds.com website to get started, or you could do a Google search such as: "Arizona auto insurance +how much liability required" ... plugging in your state, of course.

Some states also require you to have personal injury protection (PIP), also known as medical payments coverage. This would cover your medical expenses in the result of injuries from an auto accident. An insurance company can tell you what's required in your state, and you can also look it up on your state's DMV website or the official state website.

This brings us to the optional forms of auto insurance coverage. Here is where it becomes a matter of personal preference. How much comprehensive and collision coverage you choose should be partly based on the value of the car you are insuring. If you have an expensive car, you would want more coverage. On the flip side, if you're driving a low-value car, you might not need as much of these coverage types -- if any.

So, how much auto insurance do I need to buy? To answer this question, you must start with the minimum amount required by your state, because there's no getting around this. Then you should choose an appropriate amount of collision and comprehensive based on the value of the car.

Bonus Tip: Another good way to figure out how much auto insurance you need is to get an online quote from a provider. You can use the box at the top of this website to get started. When you get an online quote for insurance, the website will walk you through the various choices discussed in this article. Then you can figure out what that would cost you in premium payments each month.

Your Homeowners Insurance Deductible Amount

How much of a homeowners insurance deductible do you need on your policy? What's the relationship between the premium and the deductible? Should you increase the deductible to lower your monthly payments, or is that risky?

These are some of the most common questions homeowners have on the subject of home insurance. It's easy to understand why, because this policy is going to cover one of your most prized possessions. So you want to ensure you have the right kind of coverage. At the same time, you don't want to overpay for your homeowners insurance, through the deductible or the premium.

What to Know About Insurance Deductibles

Here's what you need to know about homeowners insurance deductibles and how they affect you. These are just some of the basic facts on this subject. Later, I'll give you may own recommendation on how to handle deductibles, premiums, and other aspects of your home insurance policy. Let's start with some basic terminology, for those who are new to this subject:

• The deductible is the amount you pay in the event of a claim, before the insurer will make any payments. For example, if you make a claim on your homeowners insurance policy to cover fire damage, and your deductible is $1,000, you must pay that $1,000 before your insurer will pay the rest.
• The premium is what you pay each month for your policy coverage.
• In most cases, these two components (the deductible and the premium) have an inverse relationship. In other words, when you raise your insurance deductible it lowers your monthly premium.
• Most insurance companies these days suggest a minimum deductible of $500 for home insurance policies.
  
• By increasing the deductible (the amount you would pay toward a loss), you could save money on the premium you pay each month.
  

This last point is where there's a difference of opinion among real estate and insurance experts. However, most people seem to recommend increasing the homeowners insurance deductible amount in order to lower your monthly premium. The logic is that you know you'll have to pay the premium each month, but there's only a small chance you'll ever have to pay the deductible (in the event of fire, flooding, theft, etc.).

Clark Howard, America's "money saving expert," recommends that you raise your home insurance deductible to $1,000 or $2,500. There many other people who suggest the same thing, and I fall into this camp as well.

It's also worth noting that you may have other deductibles on your policy, depending on where you live. You might have a separate deductible for living in an earthquake-prone area, for example, or a place that gets a lot of wind damage from hurricanes. You'll have to ask your insurance provider about these.

I hope this article helps you understand the relationship between homeowners insurance deductibles and premiums. If you'd like to get a quote for such a policy, use the box provided at the top of this website.

Why You Need Apartment Renters Insurance

Many people who live in apartments want to know if they need renters insurance to cover their belongings. The answer to this question lies within another question: Can you afford to replace everything within your apartment, out of your own pocket? And are you willing to do this in the event of theft, fire or flooding, etc.?

If you answered no to one or both of these questions, then you should get apartment renters insurance to cover your belongings. Plain and simple. When you consider how cheap the average renters insurance policy is these days, it becomes a bit of no-brainer. Why wouldn't you pay so little to cover so much?

It really comes down to the value of your belongings. If you have a lot clothes, electronics, jewelry and nice furniture, then you should seriously consider an insurance policy to cover everything within your apartment. On the other hand, if your place is sparsely furnished with very few items or value (if any), then you may be able to get by without renters insurance coverage.

So you need to start with the question I opened this article with: Can I afford to replace everything within my apartment if it were lost, and would I be willing to do so.

My Apartment Story

I once rented an apartment in Newport, Rhode Island. On the advice from my mother, I purchased an apartment renters insurance policy with basic coverage. I was surprised how cheap it was -- I think I paid about $150 per year back then.

Long story short, my apartment was broken into a couple of months later, and the thieves made off with more than $2,000 worth of stuff. The insurance company covered the loss, and my premium only went up by a small amount. While I no longer live in an apartment, I always recommend renters insurance to people who do.

Get an Insurance Quote Online

If you want to find out how much it will cost to insure your belongings, you should use the Internet to get quotes from multiple providers. It saves you a lot of time, and it lets you compare quotes and offers from several companies at once. You can use the box at the top of this blog to get apartment renters insurance quotes through a safe and secure website, InsureMe.com. You'll be able to get quotes from such well-known companies as Nationwide, Farmers, Allstate and others.

Here's how to do it:

• From the insurance quote box at the top of this page, select "Home" as the type of insurance.
• Enter your zip code, and then click on the "Quote" button.
• From the insurance options on the next page, select "renter" and continue.
• Provide the basic information requested on the next page, and you're done.
• You'll get quotes for renters insurance from several big-name lenders.
• Choose the quote and terms that appeal to you the most, and contact the insurance company to do the paperwork. Done!

When compared to other types of coverage, apartment renters insurance is fairly straightforward. It's also relatively inexpensive, and you can select a coverage amount based on the value of your belongings. If the items in your apartment have significant value, you should seriously consider getting renters coverage to protect them. You can do it online, quickly and easily, but using the quote box at the top of this website.

How Do I Find Car Insurance Online?

How do I find car insurance without wasting a lot of time and energy? It's a common question among insurance shoppers, and it's also the topic of today's blog post.

I can answer this question with two words. Online quotes. The best way to find car insurance these days is to use the Internet. In the "old days" before we had the Web, you only had one option for getting auto insurance. You had to drive down to your local insurance office and take whatever they gave you. But not anymore. The Internet allows you to get multiple quotes at once, which helps you compare costs and coverage.

So that brings us to the next logical question. How do I find car insurance online? There are literally thousands of websites online today that offer quotes for auto insurance. Some of them do a great job, while others are best avoided entirely.

We have longed recommended the InsureMe website for two simple reasons -- it's easy to use, and it helps you get quotes from multiple car insurance providers at once. You fill out the form online (just once), and then you get quotes and other information from such providers as Nationwide, Farmers and Unitrin Direct.

Here's how it works:

• Click on the auto insurance quote link at the top of this blog.
• Enter the information requested on the InsureMe website.
• You'll then receive quotes from multiple providers.
• You can compare the cost and coverage to choose the best policy.

How do I find car insurance quickly and easily? It's a question that many people ask, and with good reason. The Internet makes the process easier than ever, while giving you access to a broader range of insurance companies and products. Get an online quote for your next car insurance policy, and you'll be glad you did. Good luck with your search.

Related article:
How Much Auto Insurance Do I Need?

Get a Homeowners Insurance Quote Online

If you are a new or soon-to-be homeowner and you have questions about insuring your home, you have come to the right place. As a service of the Home Buying Institute, this educational website provides the information and resources you need to make smart decisions about your homeowner insurance policy.

What kind of insurance do you need? How do you request a quote? Can you save money in the process without sacrificing insurance coverage? Throughout this website, we have provided answers to these home insurance questions and more.

Insurance Requirements for Home Buyers

When you buy a home, your mortgage lender will most likely require that you have home insurance prior to your closing / settlement day. In fact, most lenders want to see proof of payment for a full year of the home insurance policy. This only makes sense, because the lender has a large financial stake in the home you are buying.

But what if you are buying the home outright, without the need of a mortgage payment? Do you still need homeowners insurance on the property? The answer is a resounding yes! You should always have insurance on a home you own. In fact, we can think of no situation where it makes sense to pass up insurance.

Getting Insurance Quotes Online

Purchasing homeowners insurance a pretty straightforward process. You would start by determining how much coverage you need, choosing your deductible, and then purchasing the policy. It's not much more complicated than that. The Internet also makes the process a lot easier for you. In particular, the Internet allows you to get online quotes for homeowners insurance, quickly and easily. It saves you time and energy, and lets you compare offers from multiple insurance companies at once.

A lot of well known, big-name companies offer online quotes. That's another benefit of using the Internet. It gives you easy access to a variety of insurance providers. For example, by using the "Get a Quote" box at the top of this blog, you can get homeowners insurance quotes from such familiar names as Farmers, Nationwide and Allstate. To get started, just select "home" for the insurance type, enter your zip code, and then click the "Get Quote" button.