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It is a good idea when you are considering the purchase of insurance for your car to consider a number of things. You should look at what your state requires as a minimum amount of coverage of auto insurance since this figure is known to vary from one state to another and depends on where you are living at the time of the purchase. In the state of Colorado, for example, 25/50/25, which is the minimum requirements for auto insurance coverage, is in relationship to bodily injury liability limits. What this means is that $25,000 would be paid per person, $50,000 per incident, and an amount of $15,000 for property damage. It is necessary to remember however, that these are the absolute minimum limits that the law requires. It is a very good idea to purchase more than this amount in bodily injury and liability/property damage coverage. In the event that you were involved in a multiple-car accident, or even in the case where you might have caused an accident where only a few people are injured, it is very likely that more damage would be caused than you might think. Therefore it is will worth paying the extra premium you are paying for the greater coverage even though you may be conservative with your money.

Comprehensive and Collision Auto Insurance Coverage

An important thing is to consider what amounts of comprehensive and collision coverage are appropriate when purchasing a used car. One way of reducing your premium is to opt for a higher deductible. Also, there are two different types of deductibles: comprehensive and collision. The deductible relating to the comprehensive coverage includes any damage inflicted on your vehicle through vandalism, acts of God, a hit-and-run situation, and in the case of hitting an animal. Collision coverage occurs in the event that you actually hit another vehicle on the road. Comprehensive claims will not cause an affect on your future premiums, but in the case of collision claims your future premiums are negatively affected. So this generally means that it is best to maintain a lower comprehensive deductible, but a higher collision deductible. An example could be having an auto policy with a comprehensive coverage deductible of $100 and a collision coverage deductible of $1000. In addition, glass coverage is included in the comprehensive deductible. There are insurance companies that offer a $0 deductible for glass coverage.

Used Cars Valued Under $2000

You should only put liability coverage on your used car when it is not worth more than $2000. In this way you can avoid the possibility of paying out a collision deductible that costs you more than the vehicle is actually worth. Don't forget however, to include a reasonable amount of bodily injury liability coverage, which would cover you if you are at fault in an accident. In the event that you might cause injury to someone, you are not allowed to simply claim that you are broke or have no coverage. You will still have to pay for the injuries or property damage you have caused.