We all want to
try and save money on our car insurance premiums, but we should always have a
clear idea in
our minds of why we have it in the first place, and just how important it is.
instance, if you
have an accident while travelling in your car, and especially if you caused it,
help protect you from having to pay out thousands in damages and repairs, the
of which can be
crippling for those without protection.
Can’t you just have minimum coverage?
Well yes, you can of course have the minimum coverage required by the law in your state, but while you might be all legal and above board, the policy may fall way short of the coverage that you need if you have a serious accident in your car. In fact, if you’re coverage is inadequate in the event of an accident, you can personally be held liable for any damages that you’ve caused. So, the long and short of it is that it makes absolutely no sense to have insufficient coverage, whether it’s legal or not.
How can you judge how much coverage you’ll need?
Think about the overall value of any assets that you have; if you’re a young, unmarried person with no real assets to speak of, such as property, savings or investments, then you may get away with minimum coverage for your vehicle. However, if you do have assets that amount to at least a few thousand dollars, then you’ll need greater coverage. Lawsuits after an accident are common and can end up costing you a significant amount of money, and if you have substantial assets, you’ve got more to protect and so will need a level of coverage that is much higher.
Is it possible to have too much coverage?
Yes, it is possible. Aside from the fact that you might be paying over the odds for a policy with an excessive amount of coverage, a larger policy can make you a prime target for frivolous lawsuits. When the complainant initiates a suit, the attorney will look at the amount of coverage that you have, and the larger that coverage, the more the complainant may be likely to squeeze from you.
It’s not always easy to know exactly what type of coverage you should get when insuring your car, but the best advisors are those who specialize in auto insurance and who can give you an unbiased rundown of your choices. For more detailed advice and guidance, contact your local auto insurance specialists.