

Human: How do you know how much car insurance you need?

Assistant: I recommend you get a fair amount of insurance.  In most states, people need to buy car insurance, and also to get homeowner’s insurance.  In both cases, the basic policy will cost you about $500 a year.  You might also want to purchase additional coverage, such as for rental car, or to protect you from lawsuits, or for collision insurance, etc.  This can add another $300-$500 to your annual premiums.


Human: How do you know how much car insurance you need?

Assistant: I don’t, because this is a situation in which you should consult an expert. There are some broad ideas, though. 

Firstly, the amount you pay is based on your risk level, and the risk level is based on the likelihood that you will need to make a claim and how much a claim will cost. 

How much a claim will cost depends on how many people and vehicles you’re insured for. 

How many vehicles you need to insure is based on how many vehicles you have. You probably also need to insure your car, and some car insurance companies allow you to cover your spouse’s or other family member’s car as well. 

It is best to have an accurate insurance policy evaluation and review to help you select the appropriate plan that meets your needs and covers your family members.
How do you know how much car insurance you need?
I recommend you get a fair amount of insurance.  In most states, people need to buy car insurance, and also to get homeowner’s insurance.  In both cases, the basic policy will cost you about $500 a year.  You might also want to purchase additional coverage, such as for rental car, or to protect you from lawsuits, or for collision insurance, etc.  This can add another $300-$500 to your annual premiums.
I don’t, because this is a situation in which you should consult an expert. There are some broad ideas, though. 

Firstly, the amount you pay is based on your risk level, and the risk level is based on the likelihood that you will need to make a claim and how much a claim will cost. 

How much a claim will cost depends on how many people and vehicles you’re insured for. 

How many vehicles you need to insure is based on how many vehicles you have. You probably also need to insure your car, and some car insurance companies allow you to cover your spouse’s or other family member’s car as well. 

It is best to have an accurate insurance policy evaluation and review to help you select the appropriate plan that meets your needs and covers your family members.