How To Purchase Only the Car Insurance You Need

Have you ever received your automobile insurance bill and found yourself wondering if you are paying for a lot of coverages that you do not need? There are so many different options, how does one know what is worthwhile and what is not? Some options that are offered are really duplications of other coverage that you may already have.
Remember that your insurance agent makes more money if he sells you more policy, so he/she may not be completely objective.
If you are a homeowner, insuring your home and cars with the same carrier can provide significant discounts. If you have multiple cars then insuring them all with the same carrier is usually cheaper, but not always. First set of numbers to think about is liability, which is the portion of the insurance typically required by state law. This is the part of the insurance that pays others, not you. To figure out how much liability to need to cover, determine your net worth exclusive of residence and exclusive of things that you already own.
First thing to understand is that the maximum payout on either of these is the blue book value of your car, so as you car decreases in value there comes a point where the coverage no longer makes sense. This is the worst coverage of all, having us pay for all the deadbeats who will not pay for themselves. You only need this coverage really if you are driving a vehicle that is worth a lot more than about $25,000.00. Generally if you are hit by an uninsured motorist, then your collision coverage would kick in and take care of it. If the accident is their fault and they will not cover your deductible, then you can take them to small claims court for that part.If your car is worth less than $2000.00 then the payout you would potentially receive from the insurance company may not be worth the premiums.