car insurance help

Hi folks,

I was looking at changing car insurance a few months ago and found a really useful thread here about relevant considerations in deciding on coverage amounts, that now I can't find for the life of me. So I'll pose this question: for those with insight and experience into the necessities of car insurance, what are the coverage amounts (whether dollar-specific or percentages) or other factors that I should be considering? 

I am the sole owner of a financed 2018 Prius with low annual mileage (approx 6k/yr) for which I'm that main driver but that  my sweetie drives with myself as passenger probably every couple of weeks.  I don't currently need to insure my kid, but they'll be turning 16 in 6 months, so that will become a consideration soon.


Many thanks.

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  • To find the right coverage level, a good rule of thumb is getting enough liability coverage to equal the value of all your financial assets, like your retirement savings and home value. That way in a worst-case scenario, your insurance policy gets used first and foremost if you're sued for a car accident, rather than your assets. Since you have a car loan, your lender probably requires collision and comprehensive coverage too. You'll pick the deductible for these, the amount you pay up front before your insurance pays out. The sweet spot is an amount that you can pay easily after an accident without straining your savings, like $500 or $1,000.Since you drive much less than most people, you could look into pay-per-mile or telematics car insurance from companies like Metromile or Root. Telematics policies also track your and your teen's driving and set rates according to how safe everyone drives. Hope this was helpful and gave you some options to look into! 

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