An overwhelming majority of states require individuals, who operate vehicles, to carry insurance. Many states also outline coverage limits drivers must have in their policies. These minimum limits may seem like enough to get you on the road, but they may be inadequate, if you are involved in a serious accident. For proper protection, you may want to consider raising your limits.
The Problem with Minimum Coverage
Drivers must carry basic liability coverage in most states, which pays for injury and property damages if you are found at fault following an accident. These state limits vary but can be as low as $10,000 per person or $20,000 per accident.
If you get into an accident, there’s a chance you could be sued. If this happens, minimum liability coverage may not be sufficient to cover the damages, and you could end up paying thousands of dollars out of your own pocket.
In addition, if you cause an accident and your liability limits are too low to cover the expenses, the other party might go after your assets in court. It is important to carefully evaluate how much coverage you need and to secure the proper limits in order to protect yourself.
How Much Auto Insurance Should I Carry?
It can be tempting to pay the lowest amount possible for auto insurance, but doing so can leave you exposed to serious financial risks. Securing higher limits can offer sound financial protection and provide you with peace of mind in the event of an accident.
The higher you set your coverage limits and the lower you set your deductibles, the less you'll pay out of pocket after a claim. Be sure to determine how much you can comfortably afford when setting your coverage limits and deductibles. Raising your limits and paying a little more each month can allow you to get the most out of your investment.
Customize Your Policy
Adjusting collision, comprehensive, medical expenses, uninsured motorist and no-fault coverage are just a few ways you can customize your auto insurance. For your specific situation, you can also tailor policy limits.