One of the insurances you absolutely need to carry is auto insurance. Now, if the first thing you said to yourself was: “I already have the minimum.” you need to understand where the real risks lie. Of course you have to carry at least the state minimum for where you live. But is that really enough?
If you want to be wise and protect your ass(ets) consider this: If you ever cause a wreck that totals another car or results in serious bodily injury or death, you will most likely be sued for much more than the minimums and you need to know that your personal assets are at risk for lawsuit. So, stop and think about the other risks you are exposing yourself to when you only elect the minimum auto coverage.
Another way to think about this is to consider the following: Your car represents one of your biggest liabilities to your personal assets. How so? Well, unfortunately cars destroy other cars and kill and injure people. And, these unfortunate facts generate big money lawsuits and as I mentioned before your personal assets are going to be at risk. THIS is the main reason you want to insure yourself beyond the minimums.
Here are a few terms to become familiar with:
Minimum Auto Coverage – refers to your state’s legal minimum in order to drive a vehicle.
Regular or General Auto Coverage – refers to coverage that will typically pay liabilities up to $50,000 per person and $100,000 per accident.
Premium Coverage – refers to coverage that will typically pay liabilities up to $100,000 per person and $300,000 per accident.
Ultra Coverage – refers to coverage that will typically pay liabilities up to $300,000 per person and $500,000 per accident.
The point to today’s post is simply this: If you are driving a vehicle of any sort, you are a moving liability. We all are. By not adequately insuring yourself, you are leaving your personal assets at risk. Yep, you could lose everything in one bad turn.
So, think twice when going for the minimums and insure not just your car but your personal assets as well.
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