Auto insurance is a requirement in virtually every state. We buy it because we have to and we choose limits that meet are needs and budget.
What if I put car insurance to you this way. Every coverage pays you except for one. That’s right one.
I have spoken to many people about auto insurance. Seems like only two things stand out to most consumers about car insurance:
#1 Auto insurance liability limit, that pays other people.
#2 Deductibles for damage to the vehicle (collision & comprehensive)
What About Other Car Insurance Coverage Options?
After that, we seem to be in no man’s land when it comes to car insurance.
Most states have some type of uninsured motorist law that is mandatory. This pays you if you are in accident with another driver that has no insurance or perhaps, not enough. You heard me right, your auto insurance pays you if you need it and the other guy does not have it!
What About No Fault or Personal Injury Protection?
Many states have No Fault or Personal Injury protection laws that are part of auto insurance, this pays you as well. If your state does not, it may offer higher limits of medical payments coverage, which also pays you.
Which Coverage Levels Make Sense?
We see it time and again, the car insurance limits that pay the “insured”, you, are almost always the coverages at the lowest levels.
Do yourself a favor, take ten minutes and check them out on your auto insurance policy, it can save you a lot of heartache in the end.
Your agent or broker does not pick these limits for you and some of our insurance friends, you see all the time on TV, in your mailbox and on billboards, more often than not, quote these at low levels so the premium is lower.