Car insurance coverage is something we all need. It is the thing that keeps us from financial trouble after an auto accident. It is also there for us in case someone is injured in an accident. The last thing anyone wants to deal with after an injury is financial trouble, and our auto insurance policies are designed to shield us from just that. In order to have that piece of mind it is important to purchase enough coverage.
Five-thousand dollars is the minimum amount of coverage allowed by law in most states. Unfortunately $5,000 may be woefully inadequate in many accidents. Imagine if you were to hit a nice new Volvo some rainy evening and it is totaled.
If you bought the minimum amount of required insurance you may be held liable for the entire cost of the car minus the $5,000 dollar payout from your insurance company. This could mean you will have to pay $35,000 dollars or more right out of your pocket.
Many people without significant assets think this is not a big deal because they don't have any money to go after if this were to happen to them, but they can still be sued by the other driver's insurance company and have their paychecks garnished each week until the settlement is paid.
This can all be avoided by purchasing more than the minimum amount of coverage from your auto insurance agency. Increasing the coverage level usually only costs a few more dollars per month for the duration of the policy and it will be worth it if you are ever involved in an auto accident.
Car insurance coverage is important, but having enough car insurance coverage is even more important. If you aren't sure what you currently have call your agent and ask what your coverage limits are. If they aren't high enough then purchase some additional coverage before it is too late.