Signs You Need More Auto Insurance Coverage

5 October 2023 by Elijah Steward

Car insurance is a necessary part of owning and driving a vehicle. Not only is it a legal requirement in the majority of states, but it also offers financial safeguards in the event of an accident. However, many drivers are underinsured and do not have enough coverage to fully protect themselves and their assets in the event of an accident. Check out the signs that you need more auto insurance coverage.

You Have a Low Liability Limit

Liability coverage, a crucial component of your auto insurance policy, financially protects you from any damages or injuries that may arise from your actions while driving, ensuring that others are properly compensated. If you have a low liability limit, you may not have enough coverage to fully protect yourself in case of an accident. Most states require a minimum liability limit, but it is often not enough. If you own assets such as a home or have a high net worth, it is recommended that you have a liability limit that is higher than the state's minimum.

You Have a New Car

If you've just bought a new car, it's worth considering adding collision and comprehensive coverage to your policy. These coverages pay for damages to your own vehicle in case of an accident or other incident such as theft or natural disaster. If you have a new car, it is likely that the repair costs will be high, and having collision and comprehensive coverage can provide peace of mind.

You Have a Long Commute

For individuals with long daily commutes to work or school, it may be wise to consider augmenting your auto insurance policy with additional coverage options. These invaluable inclusions offer comprehensive protection for various expenses, regardless of fault. Given the increased risk of accidents associated with lengthy commutes, securing this supplemental coverage can prove highly beneficial.

You Have Teen Drivers

If there are teenage drivers in your household, it's wise to think about augmenting your policy with extra coverage. Teen drivers have less experience and are more likely to be involved in accidents, and adding coverage like liability and collision can offer enhanced protection to shield against unforeseen circumstances. Additionally, if your teen driver is involved in an accident, you could be held financially responsible for any damages or injuries they cause. Having adequate auto insurance coverage can protect you from this liability.

You Have a Higher Net Worth

If you have a higher net worth, it is important to have enough auto insurance coverage to protect your assets in case of an accident. If you are sued and do not have enough liability coverage, your assets could be at risk. It is recommended that drivers with a higher net worth have liability coverage that is at least equal to their net worth.

Remember, the cost of not having enough coverage could far outweigh the cost of paying for additional coverage. Stay protected on the road with adequate auto insurance coverage. For more information on auto insurance coverage, contact a professional near you.

Share

Search