Should you only get the minimum Car Insurance required?
In this article we provide a video and a written review of this important
auto insurance decision. Each state has its own minimum car insurance
requirements . Most states have 3 minimums: The maximum coverage for
bodily injury to a single person in an accident, the maximum coverage for
bodily injury for a single accident and a maximum coverage for property damage.
A typical state might have such coverage minimums as $15,000 per person,
$30,000 per accident, and $5,000 for property damage. You will usually see this
in the shorthand form “15/30/5″. The question is, should you pay the least
amount possible and get these minimums or are their risks in doing this?
Who benefits and who loses with state minimums on car insurance
Here is a well thought out video that covers the pro’s and con’s of this
choice:Who benefits and who loses with state minimums on car insurance
Why would you carry more then the stat required minimum auto insurance?
The video above is very clear on this and we recommend that you watch it.
The problem is that if you do not have enough car insurance, a person involved
in an accident caused by you can sue you and go after your personal assets such
as your savings or things that you own.But how much is enough? That question really needs to be answered by either a lawyer, a financial consultant or a auto insurance professional.
If you are buying your insurance on line you can still get the recommendations from the insurance company that you decide to go with. Just call them up and ask. Often they will put you in touch with a local insurance broker of theirs that you can talk to.
If you already have auto insurance and don’t know if you have the right amount of liability coverage, you can still contact a lawyer, a financial consultant or an insurance agent with your insurance company and find out how much you need. You can change your coverage levels at any time although it will most likely affect the cost of your insurance.
Another viewpoint
Harry gross is a writer for the Philadelphia daily news. In the article Harry points out that the state liability minimums “..are set for those who have no substantial assets” meaning that if you have nothing to take you have less risk in taking the state minimums then someone who has assets like a house or investments or a savings account.
In answering the question posed by a reader Harry went on to explain as follows:
“May I suggest that you go for liability protection of $100,000 per individual, $300,000 per accident, and $25,000 for property? Never forget that insurance not only protects assets, but gives you peace of mind. You also might want to consider an “umbrella policy.” This will give you added protection beyond the limits of your auto and homeowner’s policies. It’s not too costly, either.”
In summary, it is up to you. The risk is clear. If you have an accident and don’t have enough coverage the injured party can go after your assets. On the positive side you can save some money on your car insurance if you go with the minimums. It is up to you.
photo credit: Dr. Keats via photopin cc
