How do I know what type of liability coverage to choose for a $6,000 car?
I just paid cash for a car ($6,000) and now I need to get insurance before I register it. What type of liability coverage do I need?
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Answered on May 04, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Liability coverage has plenty of different components. As a rule of thumb, you should get as much coverage as you can afford, or enough that you won’t be ruined financially if you cause an accident.
That means that state-minimum liability isn’t good enough. Instead, you should have a bare minimum of:
- 100/300/100 liability coverage
- 100/100 in uninsured/underinsured motorist coverage
If you don’t have health insurance, you might also want to consider getting MedPay.
Keep in mind that you can raise your limits for only a little more money. But this should give you a basis to start from.”
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