Do You Carry Enough Car Insurance?

In most states, car insurance is required in order to legally drive and not have to deal with fines or worse. If you carry the minimum level of coverage required in your state, you might assume that you will be shielded from expenses if you get in an accident.

How Much Car Insurance Do You Need

Any amount of car insurance will help mitigate costs, but if you have insufficient coverage, you could end up footing most of the bill. This might prompt you to ask — do you have the right car insurance coverage? If you’re wondering how to know how much car insurance you need, check out the following ways you can assess your coverage and ensure that you have the right policy for your needs.

Consider the Cost of an Accident

According to the National Safety Council, the average cost of a car accident is $29,200 if it results in an evident injury. That cost rises to $101,000 if it results in a disability and $1,750,000 if it causes death. These figures are alarming, and they’re even more concerning when compared to the minimum coverage amounts required in many states. If you only have state minimum insurance, a serious accident could be financially devastating. Investing in sufficient car insurance is the best way to protect your assets.

You need to have car insurance to drive freely and legally in most states. However, having the minimum level of coverage will not shield you from all expenses if you get into an accident. Any amount of car insurance will help mitigate costs. Conversely, you could foot most of the bill if there is insufficient coverage. It might prompt you to ask — do you have the right car insurance coverage? Also, how much car insurance do you need? Check out the following ways you can assess your coverage. Then, ensure that you have the right policy for your needs.

Consider the Cost of an Accident

The National Safety Council reported that the average cost of a car accident is $29,200 if it results in an apparent injury. That cost rises to $101,000 if it results in a disability and $1,750,000 if it causes death. These figures are alarming. Additionally, it is even more concerning when compared to the minimum coverage amounts required in many states. A serious accident could be financially devastating if you only have state-minimum insurance. Investing in proper car insurance is the best way to protect your assets.

Find a Deductible You Can Afford

Even if your auto insurance includes sufficient coverage limits, you may still be saddled with a significant financial burden after an accident if the deductible is too high. Keep in mind that an insurance policy’s deductible should be a sum of money that you would be able to pay immediately if you needed to. If your deductible is $10,000 — and you do not have $10,000 in savings — you should consider a policy with a lower deductible.

Assess the Value of Optional Coverage

Many drivers decline optional coverage such as collision, comprehensive, or roadside insurance to save money. Indeed, your premium may be lower if you forgo these options, but you should carefully assess the value they can provide. If you cannot work because of mechanical problems, roadside assistance may cost you less. Similarly, collision coverage would have been a good investment if you total your car in an accident that is your fault.

Be Realistic About Your Liabilities

If you want to find the best coverage, you need to access your liabilities realistically. Invest in insurance that provides the best coverage. However, if you drive frequently or have a teenage driver in your house, you may need more coverage. When shopping for a policy, you should weigh the costs of buying against the cost of not buying. Mostly, adequate auto coverage will cost a small fraction of the potential expenses you incur in an accident with little insurance.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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