Auto Insurance Liability Limits and Just How Much Do I Need?
You’re driving down the road on a beautiful sunny day when the car in front of you suddenly hits the brakes. You were following a bit too close and don’t have time to stop. You hit him. There were children in his car and they were injured. You are at fault. Now you start thinking about how good your insurance is. You saw the ads. You wanted to save some money. What did you give up to get a good price?
Many companies advertise low auto insurance rates. “Save $300, $400 or even $500 a year!” or “Save 10 or 15%” or “name your own price!”. Most people just want a lower rate, especially in the current economy. But most don’t consider they are buying a product that can save them from financial ruin in the event of a catastrophic accident. Until something bad happens.
When shopping for auto insurance, ask for quotes using different liability limits. Ask what the highest limit available is. Some companies will go up to $1,000,000, and you might be surprised at how affordable the price is for the higher limits. Keep in mind that auto insurance liability also provides coverage for uninsured and/or under insured protection. So if you are hit by someone who either has no insurance, or carries minimum coverage limits, you can go to your own policy to make up the difference.
Bad things do happen to good people, and good drivers. Make sure that when you save money on your auto insurance, it’s not because you’ve sacrificed price for coverage.