How much coverage do I need for car insurance for myself and my teenage daughter?

Here are rules of thumb for liability coverage:





Bodily Injury covers injury to others in an accident and is usually offered in a ';split'; limit. The first number is the amount of coverage per person and the second is the amount per accident. The third number is the property protection for damaging another persons property (e.g. their car, lawn, mailbox, fence, etc.)





20/40/10 - Fine if you don't own anything, have very low income and don't care if someone is injured in an accident that is your fault.





25/50/25 - Better, but still irresponsible for most people that have a job in the U.S.





50/100/50 - Getting better. Not bad for young drivers who have no assets to protect form a lawsuit





100/300/100 - OK for most. Many people have this limit if they own a home





250/500/250 - Very good, if you own a home with equity, have a well-paying job and have other assets to protect.





Most would stop there. However, beyond this you might consider an umbrella, excess liability, policy in addition to the auto insurance. This policy will have a limit from $1M to $5M or more. These policy usually require the underlying auto insurance have a limit of 250/500/100.How much coverage do I need for car insurance for myself and my teenage daughter?
lets face it.. your teenage daughter WILL get into a wreck. they all do lol.





The big thing you need to watch is NOT getting state minimum coverages- that leaves a big chance that you will get sued for damages.





I would recommend an absolutely MINIMUM of bodily 25/50 for bodily injury per accident. What this means is.. if you or your daughter injure someone.. your insurance can coverage up to 25k per person and 50k per accident.





Also, alot of idiots only get 10k in property damage. What if she totals one new car? That would leave you with tons of out of pockets!





Again.. i MINIMUM of 50k or so is recommended for property damage.





Now, for yourself... its up to you if you think you need comp/collision. Just keep in mind... regardless of how crappy your car is.. if its wrecked... and you dont have it.. you will have nothing. Can you afford a replacement car?





And please please please get UMBI. This covers you if you or your daughter or injured by someone whos not insured... and this is TONS of people. Dont screw yourself over.How much coverage do I need for car insurance for myself and my teenage daughter?
JC,





Depends on what you are looking to achieve. If you just want to cover other people, you can get away with liability. Others have mentioned the limits, etc.





If you have medical already from your work, etc., you may not worry as much about covering yourself for that.





If you have a nice car and want it fully covered, you should get comprehensive and collision to the actual value of the car. No point paying for more than actual value, because you aren't going to get more than that back from the insurance company anyway.





If your car is only worth a couple of thousand, you may just want to skip that coverage as the premiums will probably be considerably higher, especially if your daughter is young.





Hope that helps. There are more insurance tips at the link below, like how to get discounts and stuff.
Young drivers are 3x more likely to cause an accident than a seasoned driver.





You want higher liability (because if you don't, the injury party can sue you - the legal adult - for the rest.) At best, your liability should be 100,000/300,000/100,000.





The other coverages you can play around with...If you have health insurance, they may cover injuries with a car accident. If so, you can reject Medical payments and Uninsured/Underinsured coverage.
First of all, you need to figure out what the minimum limits for coverage are. Then go from there. States like PA and New Jersey have low limits of 5K property damage and 15/30 bodily injury. 5K will not pay for anything these days.





Having comp and collision on your vehicle is dependent on the year, make and model of your vehicle. A 94 saturn is not worth the cost of collision coverage. If she drives a newer vehicle, the premium for all coverages will be higher. She could elect Comprehensive only to cover for deer hits. If you have comp and collision, don't forget to get rental coverage!





Your assets should also determine your insurance coverage. If you have a house or you have a well paying job, you want to have higher liability limits. Depending on your personal health insurance coverage, you may need to look at your first party medical coverage.





There is so much more to go into, and I can't get to it all here. No offense, but that's what agents are for.
Minimun of 50k or so is recommended for property damage.


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I look at car insurance from a particular point of view that strikes a balance between minimizing cost and maximizing coverage. Assuming I own my car(s) and do not have to follow a lender's insurance requirements, I select the highest amount of coverage I can afford with the highest deductibles the insurance company will allow, e.g. $1,000 deductible or more.





My thought is that I am buying insurance against a major accident and any damage to my car that is less than the deductible I will either pay for out of pocket or live with. Also, if I am not at fault in an accident the other party's insurance will pay all of my claim.





If you own a very old car you may consider dropping your comprehensive coverage for your car all together since it will likely be totaled in even a minor accident anyway.





Stress to your daughter that she needs to be as safe a driver as possible to keep the privilege.