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What car insurance coverage is right for a newer car?


Question: I have a 2010 Chevy Cobalt without a loan on it.  What should I have for car insurance coverage? I do not want to spend a lot.

Answer:  When you own a car in the free and clear, without any pesky lienholder telling you what coverages you have to carry, the type of car insurance you choose to carry is a personal decision to make based upon your needs and financial situation.

Your car insurance policy must first meet your state's insurance requirements. To determine what the minimum car insurance coverage that you must carry is in your state, see our interactive map that shows the required auto insurance for all of the U.S.

Most states require at least liability coverages of property damage liability and bodily injury liability. Some states also require uninsured/underinsured motorist bodily injury, and if you are in a no-fault state personal injury protection (PIP) is normally required.

It's your decision what to purchase above the state-mandated coverages.

Keep in mind that liability only covers those that you harm and not your own vehicle, so even though you want to pay as little as possible for your car insurance policy, it would really behoove you with a fairly new car, like your 2010 Cobalt, to carry physical damage coverages of collision and comprehensive.

Collision covers you if you hit or are hit by another vehicle or object. Comprehensive covers perils that are "other than collision," such as fire, theft, vandalism, flood, hail damage and strikes by animals.

It can be expensive to repair your vehicle or replace it if you are at-fault in an accident or if someone hits you who doesn't have insurance to cover your damages. That is why even without a lienholder mandating these coverages you may want them as part of your car insurance policy.

If you can afford to spend a little more, we'd advise higher limits on your bodily injury liability ($100,000 for any person you injure, $300,000 for any accident) and at least $50,000 for property damage liability (in case you hit something way more expensive than a Cobalt).

If you have good health insurance, then you can look at skipping medical coverages that your auto insurer offers such as medical payments, personal injury protection and uninsured motorist bodily injury if these coverages are optional and not mandatory in your state.

To help you decide what is right for your specific situation, you can use our car insurance coverage calculator. Once you decide on what coverages you need, get a free auto insurance quote with us. If you still have questions about coverage, you can contact our agents at 1-855-430-7753.

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