Determining the right amount of car insurance for you.
Almost every state in the U.S. requires its residents to carry some minimum amount of auto insurance. However, these minimums are never enough to protect you from all the risks that you face. So how do you decide which coverage limits are right for you? Here’s what you need to consider.
- The Problem with Too Little Insurance
At its core, car insurance is designed to protect your finances in the event of an accident, particularly accidents that you are at fault for. However, carrying insufficient auto insurance defeats the whole purpose of the coverage. While you might have enough coverage to be considered legal, state minimums are rarely enough to address the full cost of an auto accident. Once your car coverage runs out, it will be up to you to cover remaining expenses out-of-pocket. If you do not have enough money saved, then assets such as your home, retirement account, personal property, and so on could be at risk. Rather than leaving yourself vulnerable to this threat, it’s much smarter and safer to secure adequate car coverage from the start.
- The Problem with too Much Insurance
It’s important to understand that it’s also possible to carry too much auto insurance. While most drivers don’t think this is a problem, having too much car coverage is also a risk. The main issue with over-insuring yourself if that you will be paying a lot more for car coverage that you probably don’t need. Drivers with a lot of auto insurance are also more likely to be hit with a lawsuit following an auto accident. This is because attorneys assume that drivers with a lot of car coverage have a considerable number of assets that they need to protect. They encourage their clients to sue in the hopes of receiving a larger payout. To avoid these threats, it’s important that you aren’t securing more auto coverage than you actually need.
- Choosing the Ideal Coverage Amount
Unfortunately, there is no universal auto insurance coverage amount that drivers should be attempting to meet. Every driver has their own risk factors and needs, which affects the amount of coverage they need to carry. The best way to determine your ideal coverage amount is by using a car insurance calculator tool or speaking with a trusted insurance professional. By factoring in your risks, assets, and budget, you can find the right coverage to meet your needs.
This is what you need to know about securing the right amount of auto insurance. Are you looking for assistance with your car coverage needs? If so, then contact the experts at Gant Insurance Agency. Our dedicated team is eager to get you the coverage that you need today.