How Much Do I Need?
If you are shopping for automobile insurance on a limited budget, the three most important things to be concerned about are liability limits, UM/UIM limits, and MedPay limits. Even among these three, you want to always make sure that you have the highest liability limits you can afford. At a minimum, make sure you have liability and UM/UIM limits of $100,000 each person/$300,000 each accident. The rationale is that the higher your liability limits are, the less chance you have of being sued for damages and potentially having to declare bankruptcy.
If you are shopping for car insurance and your budget allows you to spend a bit more, you will want to make sure that you have liability and UM/UIM limits of at least $250,000 each person/$500,000 each accident. You should also have significant medical payments coverage of at least $10,000 for each person. In addition, you should buy an umbrella policy that includes UM/UIM coverage.
If your budget allows, you should also consider purchasing useful benefits that cover the most common losses. These benefits include zero deductable, glass coverage, AAA, and first accident and ticket forgiveness. But keep in mind, these optional benefits are optional for a reason; they are luxuries even though they happen most often. Your agent will be able to explain the ins and outs of these benefits, which will allow you to make an informed and educated decision.
In light of everything discussed above, the question you have to ask yourself is, “Is it worth it for me to spend a few extra dollars per month to protect myself and my family’s financial future, or do I want to run a big risk of having to call a bankruptcy attorney after an accident?”
People often think to themselves, “Well, I have medical insurance to cover my medical bills if I am in an accident, so I don’t need much auto insurance.” But what these people often fail to realize is that medical insurance only covers medical bills. It will not cover you if you cause an accident and are sued by the other driver or if your injuries require you to take time off work. Your auto insurance will cover these expenses and lost wages, while your medical insurance will not!
If you have questions about any of the legal issues raised in this blog, contact Dodosh Law Offices, LLC at (440) 298-2344. Or, you can fill out a contact form and Attorney Dodosh will get in touch with you.