Spring Checkup: Are You Driving Around with Enough Insurance?

If you drive a car I sure hope you are responsible and have insurance. And I want to make sure that everyone who has auto insurance, has the right level of coverage.

I know it can be tempting to purchase the minimum levels of protection mandated by your state. But that can end up being a very costly mistake. If you are in a serious accident and have minimal coverage, it is likely your auto insurance will not cover everything, and then you are personally on the hook.

Please take a few moments to review your coverage. If you work with an agent you think is good, that’s fine by me. I just hope it is an “independent” agent who works with multiple insurers to find you the best deal. Or you can spend a little time online and get premium quotes from Geico, Progressive and other reputable insurers. If you haven’t comparison-shopped for a few years there’s a good chance you might be able to reduce your premium by shopping around.

The Safe Amount of Auto Insurance

There are three separate coverages that are the heart of an auto insurance policy:

• Bodily injury liability coverage per person
• Total bodily injury liability coverage
• Property damage coverage.

Some state minimums require 25/50/25. That means the policy would pay $25,000 per person for liability coverage, up to a total limit of $50,000 and the policy would pay up to $25,000 for property damage.

Though that is a legal minimum, it is financially irresponsible if you ask me.

I want everyone to consider car insurance with coverage of 250/500/100.

Why so much?

Because insurance is all about protecting you. And if you have less coverage you will not be protected! It will be a financial disaster paying out of pocket for serious injuries, loss of wages, rehab, and such for the other driver (and their passengers) if you cause an accident.

Please don’t skimp on these coverages. Paying a higher premium is a lot smarter than one day being in a serious accident and not having enough protection.

If your deductible is $500 or less, check what it would be if you raised the deductible to $1,000. Depending on the make of your car, you might find that a higher deductible can save you plenty. It’s sure worth checking out.