Your Automobile Insurance Coverage

Have you reviewed your automobile insurance coverage?

It is generally recommended that you have a minimum of $100,000/$300,000 in liability coverage. More coverage would be even better, as many bodily injury claims involve losses far greater than these amounts.

Liability insurance protects you and your assets if you or a family member covered under your policy causes an accident. Uninsured/underinsured coverage is just as important. Uninsured coverage provides protection for you if an uninsured driver injures you or a family member. Underinsured coverage provides protection for you if an underinsured driver causes injury to you or a family member. For example, the underinsured driver may have only $25,000 in liability coverage. If you have $300,000/$500,000 underinsurance coverage, and a driver with only $25,000 coverage seriously injures you, you could recover the difference between his coverage and yours, amounting to $275,000. This example assumes your claim is worth $300,000. If your damages were, for example, only $100,000, you could recover the difference between $100,000 and the other driver's $25,000 coverage.

Another way to provide substantial protection is to purchase an umbrella policy through your homeowner's insurance. A $1,000,000 liability/uninsured/underinsured umbrella policy provides great protection for as little as $150 to $200 per year in additional premiums, if your auto and home are already insured under standard policies with the same insurance company. Homeowners and individuals with significant assets may want to consider obtaining this coverage. Call your agents and check your coverage before you are involved in an accident.