Friday, January 9, 2009

Auto Insurance

In most states you are required to have auto insurance and you don't want to be without it.

Basically, you buy auto insurance for two purposes: to insure against liability you have to others and to insure against damage that others do to you or your car.

You need to have liability insurance. How much you need depends on how much you have in assets. Whether you need insurance to protect your own car depends on your car and how detesting it would be to replace it. If your car is expensive and if buying another one would wipe you out financially, consider buying comprehensive and collision. If you have an older car and wouldn't get much from the insurance company if it were totaled, don't bother. Instead, put the money you would have paid for comprehensive and collision toward saving for your next car.

No comments: