A Short Guide to Auto Insurance: How Much Do You Really Need?

Part of being a responsible driver is making sure that you carry auto insurance to cover costs in the event of an accident. Auto insurance covers both bodily injury liability and property damage liability, but the question is, how much does a driver really need?
 
Bodily Injury Liability (BIL)
Bodily injury liability policies pay for the medical expenses of the people who are involved in a crash where you are at fault in. Most of the time, the state minimum requirements for bodily injury liability are not high enough to cover motorists’ assets.
 
Unless your income and assets are minimal it’s recommended that drivers should have at least $100,000 BIL per person and $300,000 per accident. The medical expenses for just one individual involved in a car accident could amount to upwards of $15,000, and the medical expenses for a group could exceed $30,000.
 
Property Damage Liability (PDL)
Property damage liability pays for damage to the other person’s property (vehicle) if you are at fault in an accident. The state minimum limit for property damage liability insurance is about $15,000.
 
It’s recommended that drivers should have at least $30,000 in PDL coverage, since the average cost of a new car in the United States is about $25,000.
 
There are a number of different factors that contribute to the amount a driver is going to have to pay for his or her car insurance premium. These typically include things like driving record, marital status, claim history, sex, and age. When determining how much insurance you actually need, make sure you are covered for at least the amount of the total value of your assets.
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