What coverage do I need on a new Kia Telluride that I financed?

I didn't know that when you finance a car, the lender requires full coverage. This bumps my monthly rate to $200. I have 25/50/25 liability plus collision and comprehensive, both with a $1,000 deductible. Is this acceptable coverage?

Answer
“Your collision and comprehensive coverage are about right, provided you have enough money to pay the $1,000 deductible. If you don’t, start socking away money in an account specifically for your deductible, should you need to pay it.
As far as your liability insurance goes, it appears that it’s at or just barely above the state minimum. That just won’t cut it. The high costs of fixing vehicles and medical bills makes a 25/50/25 liability policy an afterthought—a visit to the hospital for a week can cost $100,000.
For just a few dollars more a month, which isn’t much in the grand scheme of things, you can up your limits to 100/300/100 or 250/500/250. This will keep you financially stable if you should get into an at-fault accident.
In the future, make sure to budget for insurance before you buy a new car.”
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Eric Schad
Answered on Apr 22, 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.
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