Auto insurance coverage which you need to purchase depends on your state because most states require that you carry only a minimum level of liability auto insurance coverage which varies from state to state. For eg.minimum liability requirements in California for car insurance are 15/30/5 and in Maryland is 30/60/15. But most experts advise against carrying only your state’s minimum auto insurance requirements because If you have a serious accident or your own car is not worth so much, the costs can quickly exceed your state’s minimum auto insurance coverage— and you may have to pay thousands of dollars out of your own pocket. Thus, the amount of auto insurance coverage you need to purchase depends on a variety of factors which are as follow:
1. If you are not a good risk taker, your auto insurance coverage may provide you with high coverage limits and low auto insurance deductibles.
2. The amount of auto insurance coverage you need to purchase depends on where you live/stay. If you live among wildlife, beef up on your coverage.
3. If you purchased a brand new car, then your auto insurance coverage may be high to protect you against huge financial losses when you’re involved in an accident.
4. The amount of auto insurance coverage you need to purchase depends on the assets you have, the more assets the more auto insurance coverage you need to protect them.
5. If you regularly have young passengers in your vehicle, get auto insurance coverage to protect them when you’re involved in an accident.
