Higher Auto Insurance Limits Recommended

Even though every state has a financial responsibility law that states the minimum amount of insurance you must have on a vehicle, many of the state minimums are very low. Some states still have the limits as low as 10/20/10. Those numbers mean $10,000 is the maximum the insurance will pay for a person that is injures, $20,000 for more than one person inured and $10,000 for property damage. These limits are far to low to cover the losses involved in automobile crashes today, so many people will want to consider the higher auto insurance limits recommended.

With the prices of new vehicles today being well over $10,000, a person that causes a multiple vehicle crash can rack up a bill in property damage alone over fifty thousand dollars.

Of course, medical expenses are also rising so if that accident involves multiple injuries, there can be very high hospital bills, therapy and lost wages for each person involved. The old 10/20/10 insurance just is not enough.

At one time, it was uncommon for a person to be awarded more money in a court case than the amount of insurance the person had. Today, things have changes. We live in a lawsuit happy world where you can be sued for almost anything. In order to protect your property, you need to have higher limits on your insurance.

If you do not have enough insurance and cause an accident, you could find yourself drowning in lawyer's fees, court costs and court ordered payments for a loss that someone suffers. People have had to file bankruptcy for the amount of debt that is brought on by one auto accident where they are underinsured. Others have lost homes and land that may have been in their family for generations or that they have worked a lifetime to acquire.

According to experts, the minimum insurance you should have on any vehicle is 100/300/100. This is enough insurance that will cover most medical expenses, lost wages and property damage in most accidents. If you live in a state where medical costs are more expensive than most or where wages are higher than most, you may need even more insurance. Talk with your insurance agent about recommendations for your particular state.

Having adequate insurance may cost more than just carrying the state minimum. The price that you pay, however, is the price of security. It means that you can go to sleep tonight knowing that if something were to happen, you are protected by your insurance.