New to the US – Seeking Auto Insurance Advice
Hello everyone,
I’m reaching out for some guidance on auto insurance. I recently moved to the US and am currently in residency as a doctor in Miami, which means my salary is somewhat limited. I’m in the process of purchasing a car and need advice on liability coverage.
I’ve received mixed opinions so far. Some people suggest that just meeting the state minimum is sufficient, while others recommend opting for higher coverage. I’ve been considering a liability limit of 50/100/100, but I’m unsure if that’s adequate, excessive, or insufficient.
As this is my first experience with insurance in the US, I’m finding that my premiums are quite high. I’ve noticed that increasing my liability coverage often raises my six-month rate by $300-400, which is quite confusing for me.
I would really appreciate any insights or recommendations you might have.
Thank you!
Welcome to the U.S.! Navigating auto insurance can definitely be confusing, especially in a new country. Here are a few points to consider that might help you make a decision:
Minimum Liability Coverage: Each state has its own minimum liability requirements. In Florida, for example, the minimum is typically $10,000 for personal injury protection (PIP) and $10,000 for property damage liability. While some people may suggest sticking to state minimums to save money, keep in mind that this may leave you financially vulnerable in the event of an accident.
Your Proposed Coverage (50/100/100): This means $50,000 for bodily injury liability per person, $100,000 per accident, and $100,000 for property damage. This level of coverage is generally considered good because it provides more protection than the state minimum. It may offer a reasonable balance between protection and affordability, especially given your residency salary.
Thinking Ahead: Consider your potential future expenses and assets. If you cause an accident that results in significant damages or injuries, having higher liability limits can safeguard your finances. A lawsuit or large medical bills could easily exceed minimum coverage limits.
Shopping Around: Since you’ve noticed that increasing liability limits results in significantly higher premiums, make sure to get quotes from multiple insurance providers. Different companies have different pricing models, and you might find a more competitive rate for higher coverage elsewhere.
Consider Comprehensive and Collision Coverage: In addition to liability, think about whether you want comprehensive (for non-collision incidents) and collision coverage (for accidents). These can increase your premium but also offer more protection for your vehicle.
Discounts: Don’t forget to ask about discounts! Some companies offer discounts for good driving records, bundling insurance policies, or for employees at certain institutions (like hospitals).
State Regulations: Familiarize yourself with state laws regarding car insurance. Florida is a no-fault state, which means your own insurance usually covers your injuries in an accident, regardless of who’s at fault.
Ultimately, the right coverage depends on your comfort level and financial situation. It may help to consult with an insurance agent who can assess your specific circumstances and recommend coverage that fits your needs and budget. Good luck with your new car and residency!