Every state requires insurance coverage to drive a vehicle. Every state has its own coverage requirements that you must adhere to. While the minimum required by law may be sufficient to get you on the road safely, it may not provide enough coverage in the event of a serious accident. You may need to increase your coverage if you have insurance or want to purchase a policy.
Each state requires you to have at least basic liability coverage. If you are responsible for an accident, liability coverage covers bodily injury and property damage. Your liability limit for property damage is $5000. If you are found at fault, your insurance company will not pay for additional property damage.
This means that you will need to pay the money out of your own pocket. You can be sued by the other party for any money that you have not paid. You could lose your assets if you are found guilty in court. Assets are items of value you own such as your home or car. The court can also order garnishment of your wages to pay the debt. A judgment against you can negatively impact your credit score, making it difficult to get loans, jobs and insurance.
Although most accidents do not result in damages exceeding policy limits, they can happen. This is an example of how fast one can exceed the policy limit. The required property damage limit in Pennsylvania is fifteen thousand dollars. The policy limits could be exceeded if there were more than two vehicles involved in an accident, especially if one of the cars is totaled. Medical procedures for serious bodily injury can be expensive. It is possible for accidents to occur with more than one vehicle and more people, even though you might think it’s unlikely.
You can protect yourself against such problems by raising your liability limits. You could save thousands of dollars by paying a little more each month. It is easy to get more coverage. Call your agent to increase your coverage if you have an existing policy. Ask your agent for a quote on auto insurance if you don’t have an existing policy. Insurance agents can evaluate your situation and give you an estimate of how much coverage is necessary. It’s a good idea to have sufficient coverage to cover your valuable assets.
Car insurance can be expensive, but it is possible to save money each year. What is worse than having to pay for car insurance? Paying for car insurance that doesn’t provide the protection you need is the answer. Car insurance was created to protect your finances. Even though you have to pay $1500 for damages due to exceeding your policy limit, that’s still more than what it would cost to buy the additional coverage.
I can understand that raising your limits might not be feasible. Consider this: You might be able to afford to increase your limits but not to cover any damages. You can save yourself a lot by investing a little bit more now. It’s better not to have but not to need than to have but not to need.
Car insurance is purchased to protect your assets and finances. Without enough coverage, your assets and finances could be at risk. Do not accept the minimum coverage required by the state. Increase your limits to ensure you have the coverage that you require.