You already know that automotive insurance is a must-have, required by law, with specific coverage limits that vary from state to state. The problem is that many drivers stop right there at those bare minimums, which can leave them in a bad place in the event of a serious accident.
For example, Maryland drivers must carry personal liability coverage of $30,000 per person and $60,000 per accident at a minimum. That sounds like a lot of money – and it is – but if you’re at fault in an injury accident, that $30k won’t go very far, and you could be sued for the difference. That means the rest comes out of your pocket.
Your pockets aren’t that deep? In that case, the other party can go after your other assets, including your home. So while it may be tempting to hang on to a few bucks and just have minimal coverage, you’re putting literally everything else you own at risk.
That’s why it’s so important to regularly review your coverage. A young person with a limited budget and no assets might be fine with minimum coverage, but that same coverage won’t cut it a few years later when there’s a home and family to protect.
Simply put, the higher your coverage limits and the lower your deductible, the less you’ll pay out of pocket after a claim. Many people adjust to changing needs – and changing financial circumstances – by raising both coverage limits and deductibles. A higher deductible means you’ll pay somewhat more when there’s a claim, but the savings on your regular premium payments can more than make up for it. And higher coverage limits will insulate you from serious, and very expensive, claims.
Questions about automotive coverage limits? Contact Consolidated Insurance.