In question – How should I buy auto insurance coverage?
Well, the answer is generic: buy as much as you can afford. But it's not really useful. It's like a stockbroker telling you to buy low, sell high. Really, the auto insurance coverage is a set of several different types of insurance. You can browse this site to know about various auto insurance policies.
Types of Auto Insurance
Well, we learned that BI (personal injury) Automobile insurance covers liability if you hit someone else – what you would pay for them and how much you have insurance to cover your loss.
We learned that UM (Uninsured Motors) cover damage that will be paid if you were hit by someone who does not have sufficient auto insurance coverage.
This means they are uninsured or underinsured. We also learned PIP (Personal Injury Protection). This means you have insurance taken out to cover your medical expenses.
State Limitations and car insurance
The first thing you must do is determine – What are the limits that are required by your state? Each state has certain minimum requirements that you must have. Some states require PIP (Personal Injury Protection).
This means you need to be a driver in this state, to maintain this type of insurance. Others require to have a certain minimum level of BI.
Not just the minimum required
Now when you buy car insurance coverage, you must look beyond the minimums. Determine what assets you have. What are your needs? What medical insurance you have and what could be your future needs?