What should I consider when purchasing automobile insurance?

  1. First and foremost determine what the financial responsibility requirements are for your state. In some states Automobile insurance is mandatory and may include No fault coverage for medical claims. There also may be minimum limits that you are required to carry. Your insurance professional will be able to provide this information.
  2. Base your decision on value and not on price alone. Consider the quality of the company’s claims service and consumer education. The company you choose should be rated A- or better by A.M. Best, as they are the authority for insurance company rating.
  3. Purchase the amount of liability coverage, which makes sense for you. While minimum limits may allow you to comply with state regulations they may not provide the protection you need to protect other assets you own.
  4. You should decide which optional coverage you want. For example, do you want optional physical damage coverage or is the market value of your vehicle too low to warrant purchasing this coverage. Physical damage coverage will be required if you have an outstanding loan on your vehicle.