It is important to compare auto insurance prices before you purchase a new policy. It is also important to understand how much car insurance you need if you want to truly compare car insurance quotes with total accuracy. Are you buying more car insurance than you need? It is possible to learn the answer to this question by researching state minimum coverage requirements prior to making any decisions. 

Each U.S. state has its own minimum coverage requirements for legally operating a vehicle. A minimum amount of liability coverage is required in the high majority of U.S. states, but what about other auto insurance coverage types and options?

Are You Buying More Car Insurance Than You Need?

To compare car insurance rates accurately you have to first know the laws and then assess your needs as an individual or family as applicable.

For example, as an individual driver with no family who drives an older vehicle you own outright, you might get by purchasing the minimum liability coverage required by your state. Full coverage auto insurance offers deep levels of protection. It is also expensive and largely unnecessary to own. 

Purchasing full coverage car insurance is usually only required when you are financing your vehicle through a money lending service holding your vehicle title as collateral. Do you frequently drive with your family in your automobile? It might be necessary to purchase personal injury protection (PIP) and/or MedPay insurance policies in addition to your required liability coverage plan. 

Drivers who travel long distances to work, especially between states, might also purchase uninsured or underinsured motorist protection. Collision insurance is also an optional coverage but it offers an even deeper level of protection against a wider variety of accidents and damages to your vehicle.

Liability insurance coverage is required by law but only protects you from paying for damages done to another driver’s vehicle, certain property and possible passengers when you cause an accident. Are you buying more car insurance than you need? Understanding the state minimums, assessing the value of all your assets and knowing how many family members your insurance plan needs to protect helps you to compare auto insurance rates between companies offering the exact policies you need today.