Insurance Needs Approach - Personal Auto Insurance Policies

Anyone who operates a non-commercial vehicle in the United States must have personal automotive insurance on that vehicle in the event of an accident, and it's also the law. Higher coverage amounts and lower deductibles will command higher premium payments from the insurance company. Those seeking a personal auto policy should discuss the various coverage amounts with their agent to determine the appropriate levels of coverage based on their needs.

For example: Families with new teenage drivers on the road may want to consider increasing their coverage, since statistics show that more accidents happen among newer drivers. Whereas, a middle-aged couple labeled as "safe-drivers" with no prior accidents may desire to lower coverage amounts or raise their deductible to help keep premiums down.

Listed below are some common coverage amounts found in a personal auto policy:


Coverages (for example)

Limit of Liability
Liability $100,000 per person
$300,000 per occurrence
$50,000 property damage
Medical payments $5,000 per person
$15,000 per occurrence
Uninsured motorist $100,000 per person
$300,000 per occurrence
Damage to your auto
1. Collision
2. Other than collision

$500 deductible
$500 deductible
Liability Insurance


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