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Estimated read time: 4-5 minutes
Ask any insurance agent how much car insurance you need beyond the required minimums and you’ll probably get a lot of “it depends” answers. And it’s true. The amount of car insurance you need depends on several factors, including where you live, how much your car is worth and what assets you wish to protect.
As a general rule, it’s a good idea to purchase additional insurance beyond the minimums Utah requires. Having extra coverage will give you peace of mind knowing that should the worst occur, you and your assets are protected.
Here’s a look at the different types of coverage and how much insurance you really need.
Liability insurance is one of the auto coverages required by the state. Julia Kagan of Investopedia explains that liability car insurance covers the cost for others’ injuries and property damage when you are at fault in an accident. Some examples include if you crash into your neighbor’s fence, or if you rear-end someone on your commute home. It also covers your legal costs should you get sued.
Should an accident occur that involves a person, property, or vehicle and you are at fault, the required insurance minimums are very unlikely to cover the costs involved. So, how much liability insurance do you need? In short, as much as you can buy. Many carriers offer a top-tier, $250,000 per person for bodily injury liability, $500,000 per accident for bodily injury liability and $250,000 for property damage plan that seems worth the small increase in your monthly premium.
You can also look into extra liability insurance like an umbrella insurance policy that will provide even more coverage should your auto policy payment limits get maxed out.
Uninsured and underinsured motorist insurance