If you need help figuring out your assets and debts, there are additional calculators at the end of this article to help you calculate those values. Follow this general philosophy to find your own target coverage amount: financial obligations minus liquid assets. Step 1: Add up the following items to calculate your financial obligations:. Your annual salary multiplied by the number of years you want to replace that income.
Any future needs such as college fees and funeral costs. The cost to replace services that a stay-at-home parent provides, such as child care, if applicable. Step 2: From that total, subtract liquid assets, such as savings, existing college funds and current life insurance policies. If you want to quickly determine your existing life insurance needs, an estimate can be an easy way to get a value.
These methods are better than a random guess but often fail to account for important parts of your financial life. Use the calculator above to get a more refined idea of how much life insurance you need, then compare that value to these estimates. At a bare minimum, the remaining parent would have to pay someone to provide the services, such as child care, that the stay-at-home parent provided for free.
College and other education expenses are an important component of your life insurance calculation if you have kids. This formula encourages you to take a more detailed look at your finances than the other two. DIME stands for debt, income, mortgage and education, four areas that you should account for when calculating your life insurance needs. Debt and final expenses: Add up your debts, other than your mortgage, plus an estimate of your funeral expenses.
Income: Decide for how many years your family would need support, and multiply your annual income by that number. Mortgage: Calculate the amount you need to pay off your mortgage. Collision coverage pays out when your car crashes with another one. Comprehensive coverage pays for damage to your car from situations outside your control, like vandalism, theft or a deer collision. Both are optional unless you lease or finance a car. If you do buy collision and comprehensive coverage, pay attention to the deductible — how much you pay out of pocket before your insurance pays out for a claim.
They're often sold together, in limited amounts like liability coverage. Insurers offer a variety of other useful coverage types:. Roadside assistance for if you need a tow or jump start, though some companies may charge you out-of-pocket for services in addition to the regular premium. Whichever coverage types you choose, Roberts advises you to prepare for possible scenarios that might happen on the road when you buy insurance. ZIP Code. How boat docks are covered by insurance.
Motorcycle insurance Guide to reading an insurance policy. What is "no down payment" car insurance? If I cancel my auto insurance, will I get a refund? Will road rage raise your rate?
Get quote. Zip Code. Select a product Currently selected product. Is this article helpful? Still have questions? Contact us for answers. How much car insurance is enough? The car insurance coverages you may need Looking for a quick take on which coverages you may need? Coverage What it covers Required? In almost every state Comprehensive insurance What it covers Damage to your car caused by events outside of your control Required? Only if leasing or financing Collision insurance What it covers Damage to your car caused by other drivers or objects you hit Required?
Only in some states. So, how much liability insurance do I really need for my car? How much property damage liability insurance do I need? Comprehensive insurance What does it cover? Collision insurance What does it cover? Example: Chris leaves his car parked on the street overnight. How much medical payments coverage do I need?
How much personal injury protection do I need? However, you should consider adding more PIP coverage if: You have health insurance with low limits, coverage gaps, or high deductibles and co-pays You want additional coverage for lost wages, funeral expenses, or child care You frequently give rides to other people who could hold you responsible for medical expenses after an accident.
What additional coverages should I consider? Rideshare insurance Rideshare insurance is a smart choice often a required choice if you drive under a ridesharing platform like Uber or Lyft. Pro Tip: When choosing auto insurance coverages, always keep in mind how much you could afford to pay for injuries, damages, repairs, or even a new car.
How to get the right car insurance coverages New Progressive customers Call or quote car insurance online and we can help you sort through your coverage options to find the right auto policy for you. Current Progressive customers Log in to your policy or call to select the coverages you want to add to your auto insurance.
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