What Is Adequate Coverage for Car Insurance?

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Adequate coverage for car insurance is a policy that will protect you in the event of a few likely scenarios. Find out about adequate coverage for car insurance with help from a media buyer for Freeway Insurance in this free video clip.

Part of the Video Series: Car Insurance FAQs
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Video Transcript

This is Mario Raez with Freeway Insurance, and today we are going to be talking about adequate coverage for your car insurance. Here in California the law requires you to have liability insurance of $15,000 per person, $30,000 per accident and a minimum of $5,000 of property damage. I want to go ahead and suggest that you kick that coverage up just a little bit to give you adequate protection. You're going to want to go ahead and increase your limited liability by at least $25,000 per person, $50,000 per accident and a minimum of $25,000 in property damage. This will make sure that you have adequate coverage if you are involved in an accident and you are at fault and it will minimize your out-of-pocket expense. If you are purchasing full coverage, the higher the deductible, the lower your monthly payment and it all comes down to comfort level. If you are okay with paying $1,000 deductible out-of-pocket to get your vehicle fixed, go ahead, purchase that coverage, it's going to be easier for you. If you are much more comfortable with a $500 deductible, once again it's personal preference, just keep in mind that the higher the deductible, the lower the monthly payment. Full coverage is also a good coverage to have with your vehicle, especially if it's being financed or leased. The bank will go ahead and actually require you to have full coverage so to have the best adequate coverage, you're going to want to have at least $25,000 per person, $50,000 per accident, $25,000 for property damage and a deductible of either $500 or $1,000. This is Mario Raez with Freeway Insurance.


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