How Much Car Insurance Do I Need? - YouTube

Hi in our three biggest budget busters video we revealed that our car

insurance cost a measly thirty four dollars per month because we chose to

self-insure meaning that we felt we had enough money in the bank that if we had

to replace our car

we could for no other reason other than I had kind of a strange feeling

I decided to take a closer look at that plan it was a good thing that he did

because it turns out that all are savings

and future plans were at the mercy of us never getting into an accident yikes

but before getting started I want to make

very clear we're not licensed or qualified in any way to give

any information about car insurance or legal or blah blah blah

all the information we are going to provide is based on a having geico

insurance in Florida FYI

we have invited Colyn and Peyton and Brady "look a chicken!"

to help us keep things simple and

entertaing bodily injury is the big one

this covers you if you injure or kill someone in a car accident

in Florida the state required limit is ten thousand dollars per person and twenty

thousand dollars per occurrence

what we didn't realize is once those limits are met you are held

personally responsible for the remainder all your assets including your savings

and even your future wages are in jeopardy "give me all your money"

if you have any amount of savings like we do you're gonna want more coverage

property damage pays for the repair of somebody else's

car home or property in the case of an accident with the average price of a new car

in 2014 being $32,086

you can see why the ten thousand dollar minimum is a joke not to mention

multiple car pile-ups

or running into buildings this is where things get interesting personal

injury protection covers your own medical bills and lost wages in the

event of an accident

so if bodily injury covers the other person personal injury protection

covers you

medical payments is the option to basically

increase the coverage of your personal injury protection minus the lost wages

part

It's extra money for X-rays surgeries and ambulance rides without waiting for the

results of

a lawsuit or investigation

uninsured motorist to me is the most interesting because it's basically

buying insurance for every other driver on the road

where it gets complicated is that this should technically be covered by your health

insurance

but you would have to call and check to be sure this is so boring

okay so that covers injury and everyone elses car in an accident but what

happens to your car

if you hit another person's car it's called collision insurance and this is what most

people think of when they

think of car insurance it basically replaces or repairs your car

if you were to get into an accident it's also very expensive

comprehensive on the other hand covers everything else including fire flood

theft falling objects vandalism hail malicious mischief windstorm civil

commotion explosion earthquake water damage lightning larceny water damage

and damage caused by flying objects in their words

missiles it also happens to be super cheap all right now that we know

buying how much insurance do we actually need well for me the

biggest eye-opener was how important bodily injury and property damage

coverage is

and how cheap it to increase our coverage from the embarrassingly low ten

thousand dollar limit to a more reasonable hundred thousand dollar limit

was only fifteen dollars a month but as our networth continues to increase I'm going

to be ratcheting up those limits to cover our asses

assets assets and the most expensive part of car insurance

is still the collision coverage and this covers your car for replacement or repair

if you get in an accident this is where you can save some money if you have enough

in the bank to cover the cost of a replacement car should you need it

even with high-deductible we would need to get into an accident every 5.2 years

to make the collision insurance worth it

we know this video is boring but with so many savers watching we knew it was too

important to ignore

so check out how much insurance you actually have and make sure they you have

enough to cover your asses... assets.

luckily we learned this lesson the easy way

and not when it was too late the hard way but let us know below

if we missed anything and how much insurance you think i enough

thanks for watching

Bye!