Tips for Adding Car Insurance Coverage

Adding car insurance coverage on top of the state requirements protects you from lawsuits and financial responsibilities. The average rates for full coverage in the US are $79.58/mo.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: May 18, 2020

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Here's what you need to know...

  • The state-required minimum liability insurance is not enough coverage for you to be fully protected
  • If you car is worth more than two thousand dollars, consider adding comprehensive and collision coverages
  • If you want to add more coverage, you can do it with your present company online or over the phone
  • You should always compare rates from several companies when you’re thinking about changing your coverage limits

Adding more car insurance to your policy should be easy. All you have to do is log into your account with your car insurance company online and add the coverage you need to your policy.

Before you do this, however, you will probably want to get a quote to ensure that you get the lowest rate.

Compare car insurance rates by entering your ZIP code in the box at the top of this page!

If you are using a smaller insurance company that isn’t featured on most free quote tools, you will want to call your insurance agent and ask them for a quote.

Make sure that you let them know that you don’t want to make any changes as of yet so that you have the opportunity to compare their quote with other insurance companies.

When should I add more car insurance?

The truth is that this is really up to you and your personal needs. In most cases, if you are only carrying the minimum requirements of your state because you couldn’t afford more, then you should increase your insurance as soon as possible.

Carrying the minimum will not come close to covering the costs of a serious car accident, according to the Insurance Information Institute.

In addition, if you have a vehicle that is worth more than $2,000, and you haven’t been carrying collision and comprehensive coverage, then you should go ahead and add that type of coverage as well.

You won’t want to carry this coverage forever, but if you can afford it and your vehicle is worth a couple thousand dollars or more, this coverage can save you financially should you have an accident that totals your vehicle.

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How much liability coverage should I buy?

This is the question to which everyone would like an answer and for which no one seems to be able to get a straight answer.

The reason for this is that how much you need is relative to:

  • the average cost of a vehicle in your area
  • what the most common type of vehicle driven costs
  • how much the average cost of an accident is in your area

A good rule of thumb is to choose something right smack dab in the middle of the coverages offered by your insurance company.

Most companies have a maximum coverage that they allow based on some of the statistics for your state, and even the city, in which you live.

According to the National Association of Insurance Commissioners, the minimum requirements often don’t cover the cost of even a minor accident. By choosing something in the middle, you are likely choosing the average costs for your state.

How much will my rates increase if I add more car insurance coverage?

Unfortunately, this is a question that is impossible to answer simply because there are so many variables that have to be considered in order to know the price.

What’s more, it also depends on the type of insurance that you are adding, how much you are adding, and other factors.

Getting a quote before you make the decision to purchase more insurance will help to answer this question with ease. With a free quote tool, you aren’t obligated to make a purchase and you can have the answers that you need in literally a matter of minutes.

Is it legal for my lender to force an increase in my policy?

It really depends on the requirements that your lender made part of the loan as to whether this is legal. Truthfully, in most cases a lender has the option to change these requirements at any time based upon your driving record.

For example, if you have had several car accidents, your lender may require you to increase your liability coverage to ensure that you have enough to cover the cost of any more accidents.

This is so you don’t have to forgo your car payments in order to cover the cost of a car accident.

Now, if you have let your insurance lapse and you have a loan on your vehicle, your lender has every right to require you to increase your coverage back to the original stipulations.

If you refuse, your lender will add insurance to the cost of your loan and you most certainly won’t like that.

The reason for this is that the insurance that a lender adds to your car loan will cost three to four times more than what you will pay for the same insurance if you were to buy it on your own.

If you don’t pay the insurance, then you are in default of your loan and your lender can repossess your vehicle!

You can get online car insurance quotes by entering your ZIP code below!

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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