When it comes to insurance coverage, finding the right balance is crucial. Over-insuring can lead to unnecessary expenses, while under-insuring can leave you vulnerable to financial risks. To strike the perfect balance, it's essential to assess your specific needs and consider the potential risks you may face.

For example, in the case of car insurance, a driver living in a high-traffic urban area may opt for comprehensive coverage to protect against theft and vandalism, while a driver in a rural area may prioritize coverage for collisions with wildlife.

References:

• Insurance Information Institute - What's Covered in a Basic Auto Insurance Policy
• Insurance Journal - Finding the Sweet Spot in Personal Lines Coverage