Most people choose their auto insurance limits when they first buy a policy and rarely think about them again. But the cost of an accident has changed dramatically. New vehicles can easily cost $40,000, $50,000 or more, and even what looks like a fairly minor accident can result in thousands of dollars in repairs. Add an injury, an ambulance ride, emergency room treatment, lost wages, or ongoing medical care, and the total cost can climb very quickly.
This is where your liability coverage becomes important. Liability coverage is the part of your auto insurance that pays when you cause an accident that injures someone or damages their property. If the damages are greater than the amount your policy will pay, you could potentially be responsible for the difference. For example, causing a multi-car accident can create far more damage than the minimum amount of insurance required by the state will cover. The cheapest policy may save you money today, but those savings don’t mean much if you don’t have enough protection when a serious accident happens.
That’s why we recommend looking at your liability limits based on what you have to protect, not simply what produces the lowest monthly payment. As your income, savings, home equity, and other assets grow, your insurance protection should grow with them. Higher liability limits are often more affordable than people expect, and an umbrella policy can provide another layer of protection for larger accidents. If you haven’t reviewed your limits recently, ask us to take a look. We’d rather find a potential problem now than after an accident.
Stay Tuned For Other Great Reads In This Month’s Newsletter
- Replacement Cost vs. Actual Cash Value: One Insurance Detail That Can Cost You Thousands!
- Who Is Actually Covered to Drive Your Cars?
Connect with us Oklahoma Insurance Group