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  • Simmy

What Car Insurance Coverage do I need?

Car Insurance got you scratching your head?

We're here to help!

In this blog, we recommend limits of car insurance for each of the core coverages.

Note: Everybody is different - do not take the following blog as the cut-and-dried approach to Auto Insurance. Speak to your trusted insurance adviser before choosing coverage.

Core Auto Insurance Coverages include:

  • Liability

  • Comprehensive

  • Collision

  • Uninsured Motorist

  • Rental Reimbursement

  • Roadside Assistance

Liability Coverage, often the only mandatory coverage under law, protects you when you are at-fault in an accident. The 3 major categories of this type of coverage are:

  • Bodily Injury (BI) - $250,000 / Person; $500,000 / Accident. Hospitalization, Ambulance Fees, Physical Therapy, etc. can rack up quickly.

  • Property Damage (PD) - $100,000 / Accident. Repairing cars is not cheap, especially if the car that you have struck is a luxury vehicle.

  • Medical Payments - $10,000 / Person. This should address high deductibles associated with your Health Insurance. If your Health Insurance deductible is higher than $10,000, consider raising this coverage and vice versa.

On top of addressing the high risk, these limits of BI & PD Liability insurance will qualify you for Umbrella Insurance - or Excess Liability Insurance - Policies.

Collision Coverage - $500 Deductible with Total Loss Waived. This covers damage to your vehicle when you are at-fault in an accident - including incidents with another car, a poll, a tree, etc.

Comprehensive Coverage (Other than Collision Coverage) - $250 Deductible with Full Glass Coverage and Total Loss Waived. This covers damage to your vehicle when you are not-at fault in an incident, including theft, fire, colliding with deer, etc.

Uninsured & Underinsured Motorist Coverage (UM & UIM) protects you when you are not at-fault in an accident, however the liable driver does not have sufficient insurance. The 2 types of this coverage are:

  • Bodily Injury - $25,000 / Person; $50,000 / Accident. After this amount, your health insurance should cover your expenses. Note: this coverage also provides loss of income.

  • Property Damage - $25,000 / Accident. If your vehicle does not have an Actual Cash Value of over $25,000, it does not make sense to have a higher limit for this coverage.

Towing & Labor Coverage - $500 / Incident. This amount of coverage typically covers towing within a 100 mile radius. Note: This type of coverage can vary in name and coverage between carriers - ensure you know if the type of coverage you select suits your needs.

Rental Coverage (Increased Transportation Expense) - $50 / Day; $1,500 / Rental. This will provide coverage for Rental Cars when your car is in the shop after an at-fault accident.


While this blog provides general guidelines to car insurance, ensure you speak with your trusted adviser to choose coverage that fit your needs.

Fenix Risk Management is an independent insurance agency proudly serving families & businesses in Georgia, Alabama, North Carolina, South Carolina, Tennessee, and Florida.

Simmy is an adviser at Fenix Risk Management.

Note: the opinions expressed in this blog are that of the author, not of any individual or organization referenced.

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