Insurance Machine

If you are buying car insurance for a used or older car that is not worth more than $2,000, then cover it with liability only insurance. That way, you are not paying for a collision deductible if it would cost you more to pay out the deductible than the vehicle is actually worth.

But don’t forget about the bodily injury liability coverage, as this could cover you if you are ever at fault in an accident. If you injure someone, you cannot simply claim that you are broke and have no coverage; you will still have to pay for the injuries or property damage regardless.

Minimum requirements for car insurance coverage vary depending on the state in which you reside. Here is an example: in the state of Colorado, the minimum requirements for auto insurance coverage is 25/50/25, which pertains to bodily injury liability limits.

This translates to $25,000 per person, $50,000 per incident, and $25,000 for property damage. These are the absolute minimum limits required by law. We recommend carrying more than that in bodily injury and liability/property damage coverage. If you cause a multiple-car pile-up, or even cause an accident where a few people are injured, chances are that you would cause more damage than you think. The extra premium you are paying for more coverage is well worth it.