You should never buy an auto insurance policy without putting some serious thought into the policy you are purchasing. This is not a one-size-fits all purchase and the auto insurance limits recommendations will not be the same for everyone who makes this critical purchase. These are a few factors to keep in mind as you explore the right auto insurance limits and coverages to meet your needs.
Owning a car is a huge responsibility. Cars moving at sufficient speeds can do a great deal of harm to other vehicles, other people, and other property they connect with. When you are found to be the cause of or “at fault” in an accident, it’s your responsibility to cover the costs of medical care of your passengers and other people involved in the accident as well as for the costs of repairing and/or replacing property that was damaged.
NerdWallet quotes the National Association of Insurance Commissioners as recommending that you purchase as much liability insurance “as you can reasonably afford to protect your financial security.” That’s a fair indication that liability insurance is that important for drivers today.
Protection for Your Car and Yourself
Beyond liability protection from auto insurance, which protects other people on, and off, the roads from you, you also need to protect yourself and the investment you’ve made in your vehicle. You deliver this protection by purchasing the following types of coverage for your vehicle:
- Uninsured/Underinsured Motorist Coverage
- Personal Injury Protection
- Gap Coverage
With all of these types of coverage, it is important to remember the reason you’re purchasing insurance in the first place, to avoid turning an auto accident into a financial disaster for you or your family.
That is why it is so important to ensure that your insurance coverage is sufficient to cover the costs of repairing or replacing your vehicle, without causing financial ruin for your household budget. You must work closely with a trusted and reputable insurance agent to determine the proper auto insurance limits recommendations so you can be certain you’re covered for the right amount.
More importantly, you need to determine whether additional types of coverage, such as rental car coverage, towing and labor coverage, and glass breakage insurance are worth the investment. CNN Money warns that glass breakage coverage alone can add up to 20 percent to your insurance premiums making it a questionable purchase at best.
Do your homework and carefully consider any recommendations for auto insurance limits before you make your final decision. Speak to us too, here at BOLT Insurance Agency to learn more and to get multiple car insurance quotes.