Securing Adequate Auto Insurance for Your Risks

Deciding if you have adequate car coverage.

Almost every state in the U.S. requires its drivers to carry some minimum level of auto insurance.  However, insurance experts across the board agree that these insurance minimums are not enough coverage to protect against all your risks.  But how much auto insurance is enough?  Here’s what you need to know.

  • The Problem with Insufficient Coverage

While relying on state insurance minimums may seem like the best way to save money on your car coverage, they will actually do very little for you in the event of an accident.  Your insurance will only cover a small portion of the accident-related costs, leaving you personally responsible for all the remaining costs.  If you do not have enough savings to cover these expenses, then your current and future assets can be seized in order to pay back what you owe.  So, if you do not want to put your current and future finances at risk, you need to secure adequate car coverage.

  • The Risks of Having Too Much Coverage

While it’s hard to believe, it is possible for a driver to have too much auto insurance coverage.  Typically, this occurs when a driver becomes so worried about having insufficient insurance that they go too far the other way.  The main problem with over-insuring yourself is that you will be paying too much for your coverage.  However, there are other risks, as well.  For instance, drivers who carry high auto insurance coverage limits tend to be targeted for lawsuits more often.  This is because attorneys see high coverage limits and assume that the driver has considerable financial assets that they can take advantage of.  So, while it seems safer, it is still risky to carry too much auto insurance.

  • How Much Coverage Do I Need?

There is no set, universal car coverage amount that drivers need to carry.  Every driver is different, and this means that every driver has different auto insurance needs.  The best way to secure comprehensive car coverage is by working with a trusted insurance professional.  After discussing your risk factors and the assets that you need to protect, they should be able to advise you on the right amount of coverage to meet your needs.

This is what you need to consider when setting your car insurance coverage limits.  Are you looking for assistance with your auto insurance?  If so, then contact the experts at Robert J. Los Insurance Agency in Hamburg, New York.  Our dedicated team is eager to assist you with all your coverage needs today.