How to Choose the Right Amount of Auto Insurance

What to consider when securing car coverage.

When securing auto insurance, many drivers assume that their state’s minimum coverage requirements will offer then adequate protection.  Unfortunately, this isn’t the case.  Insurance experts across the board agree that drivers need to secure coverage that extends beyond state minimums.  But how much coverage do you actually need?  Here’s what you should consider.

  • 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 address the remaining cost of the accident, 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.

  • Choosing the Right Amount of Auto Coverage

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.

These are some of the things that you need to think about when it comes to setting your auto insurance coverage limits.  Do you have more questions about your car coverage?  If so, then contact the experts at Pierce Insurance Group today.