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In this article I answer the question: "How much car insurance do I need?". The information here will help you know exactly what your state's minimum requirements mean to you and how you can definitely save money by purchasing car insurance from a position of knowing what's right for you.

Tip number 1: Where to begin

Many consumers do not realize that they can be adequately covered for liability on their car insurance without spending as much as they are currently spending. Realize that you can save hundreds of dollars a year over what you are currently paying for insurance and still have enough car liability insurance to cover any accidents.

For example, when looking into some online policies with major carriers I discovered that there can be as much as $800 difference for the same coverage (based on coverage for two older cars). A person paying thousands of dollars a year because of bad driving records can still save hundreds over their current policy if they will spend a few minutes shopping.

Tip number 2: How much coverage do you really need?

Every state has its own minimum insurance requirements. This is important to know especially if you have recently relocated to another state. Take the time to find out what your state requires for minimum coverage and then find an auto insurance company that works best for your situation.

When searching online for insurance it is easy to narrow it down to your state's minimums because these online quote services ask for your zip code. By entering your zip code, you will be directed to carriers that have the best rates for your area.

Once you find out the basic minimums for your state, you can choose additional coverages that you need. If you are extremely cautious and base your risk on the worst case possibilities, your insurance company will be happy to load you up with additional coverage that you may not need, so choose your coverage carefully.

So how do you decide how much coverage to buy beyond your state's minimum requirements?

Most experts agree that if you have a large number of assets you need to get enough liability coverage to protect them.

Let's say for example that you have $50,000 liability coverage for bodily injury but your assets are about $100,000. An attorney may go after your assets to cover any of the other party's medical bills that may exceed your $50,000 liability coverage.

Usually the recommended limit for liability coverage is $50,000 for bodily injury for one injured party per accident and $100,000 for all people injured in an accident. Also, recommended is $25,000 for property damage (over half the cars on the road are worth at least $25,000.

Let your financial situation help you determine if you go with the minimums or need to purchase more to cover your assets. If your assets do not exceed your liability limits then it is recommended that you not buy excess coverage.

Ron Stephens' blog is dedicated to helping people like you find the best possible car insurance rates for your needs, from the best companies in your area. Find out how to get up to five competitive quotes from the top carriers in your area by visiting his site NOW at http://www.cheap-insurance-quotes-online.com

Article Source: Just Tell Me How Much Car Insurance I Need