Drivers May Need to Consider Increasing Liability Coverage Soon
It is important for people to understand that buying the cheapest auto insurance coverage might not be the best decision that they have ever made. In today’s economy, many people have decided to just have minimum liability coverage on their vehicles. The problem is that most of the time, this coverage only comes with $10,000 in coverage for repairs.
This is great if you hit a 1990 Ford Escort but what happens if you hit a driver who is driving an expensive car such as a Mercedes which can cost more than $50,000? In this scenario, your auto insurance company would pay $10,000 to repair or replace the car. This means that you would need to pay at least $40,000 out of pocket for this expense.
Now most drivers do not have an extra $40,000 kicking around in their couch cushions. This means that they would probably face a lawsuit and a wage garnishment. This spells big trouble but it is happening a lot more since new prices often cost more than $30,000.
The thing to remember is that you buy auto insurance coverage to have protection from the financial liabilities that are associated with an accident. If you only have $5,000 or $10,000 in coverage for property damage or repairs and then exceed that by a large amount then you will most likely end up having to file for bankruptcy.
If you can get additional coverage, then you can save yourself a lot of headaches and financial implications. Car insurance rates are low right now and if you can afford the extra coverage, it can really help you down the road.
Many drivers just jump at the insurance policy with the lowest monthly premiums like they would a cell phone contract. However, the two are completely different so you need to read all of the fine print and understand what it means.
It is much better to have $50,000 in coverage than $10,000 in coverage if you hit an expensive vehicle. It is important to do what is right for your budget and your needs.
It is very beneficial to people to consider shopping around when they want to increase their coverage. This is especially true if you yourself have a newer vehicle. Many people have faced lawsuits after automobile accidents so you do not want to become a statistic.
The amount of money that you will end up paying for additional liability coverage will depend on how much risk that you bring to the table. For example, if you are a driver who is over 25 and has no traffic tickets or automobile accidents on your driving record then charging your coverage limits will be very inexpensive. On the other hand, if you are a 30 year old driver who has gotten several tickets and has been in two fender benders, then you will pay more for this type of insurance coverage.
It is important to be able to weigh the pros and cons of taking such an action. Today, more and more people drive newer vehicles so you have more of a chance of becoming involved in an accident with one that is expensive. If you total the vehicle in the accident then you may have thousands of dollars in damages to repay. On the other hand, you may never get in an accident that is more severe than a fender bender. The choice is yours so consider weighing your options today.
