One of the most frequent questions we receive to our agency is regards to how much insurance coverage an individual should purchase. While there are a large number factors that help determine the proper auto insurance coverage limit, we want to hopefully help provide some insight here that will you in deciding the right limit for you and your family.
First of all, almost every state requires you to buy a minimum amount of liability coverage (usually $10,000 or $15,000 per accident). In almost every case, the auto insurance coverage limits required by the state are way too low. If you’re found legally responsible for bills that are more than your insurance covers, you will have to pay the difference out of your own pocket. We recommend purchasing a minimum liability of at least $100,000 per accident, but in some cases even that limit is not sufficient protection.
In those cases you may also consider purchasing an umbrella or excess liability policy. These policies pay when your underlying coverages are exhausted. An umbrella policy typically costs between $200 and $300 per year for a million dollars in coverage. If you have your homeowners and auto insurance with the same company, check out the cost of coverage with this company first. If you have coverage with different companies, it may be easier to buy it from your auto insurance company.
In addition to liability coverage, consider buying collision and comprehensive coverage, uninsured and underinsured motorists coverage, towing, and rental care endorsements.
If you would like to see various price options for the auto insurance coverages outlined above, please feel free to reach out to our office.
