Buying the Right Amount of Auto Insurance

So, just how much auto insurance do you need?  Virtually every state has minimum amounts required for bodily injury liability coverage and property damage coverage, which are usually quite low – so low, in fact, that if you do cause an accident, you may not have enough coverage to pay the claims.  In that case, you are personally liable for the rest of the money, meaning your wages can be garnished, you could lose your home, and a bunch of other nasty things you don’t want to think about.  If you want to protect the rest of your life from those types of claims, buy the necessary additional auto insurance coverage to insure you’ll be safe.

Bodily injury liability requirements are sometimes as low as $10,000 per person or $25,000 per accident.  Honestly, knowing what medical bills can skyrocket to these days, your best bet is to increase your coverage to $100,000 per person and $300,000 per accident.  Bodily injury covers things like rehabilitation, pain and suffering award and legal costs too.

If you are a high net worth individual, raise those limits even higher, to $250,000/$500,000 levels.  Though your premium will increase at least 10% in doing so, you have a lot more to protect from a hungry lawyer with an injured client.

Property damage liability insurance covers the costs to repair caused damage by your vehicle to another person’s vehicle or property damaged by your vehicle.  Though your state may only require $10,000 – $25,000 for this type of damage, $100,000 is a much better idea. 

We’ll help you find the state insurance requirement minimums you must carry, then shop around for auto insurance to see what it will cost you to carry the extra coverage recommended.  Usually it’s not that much more expensive, and the peace of mind is more than worth it!