Many people ask me, in light of these trying economic times, how much car insurance should I buy? Well, the simple answer is as much as you can afford. But it is not always quite that simple. The type of coverage can, in some cases, be as important as the amount.
The reasoning here is that while we are all required to have insurance to drive on the roads, this is one of the first things people stop paying when a tough economy or loss of job forces them to “choose” between which bills to pay and which ones not to pay.
Therefore, it follows that we are likely to have much higher numbers of uninsured or underinsured drivers on the road in a bad economy. That’s why it is so important that you have Uninsured (UM) and Underinsured (UIM) coverage on your vehicles.
There is good news behind this advice, too. Most insurance agents won’t tell you this but these coverage amounts individually or combined UM/UIM coverage are relatively inexpensive compared to liability coverage. Most cost less than 15% of liability and “step in the shoes” of the uninsured or underinsured driver to protect you if you are severely injured in an accident that they cause. With the rising cost of health care, one trip to the hospital can easily exceed the minimum coverage required in most states!!
So, check your policies to see if you have UM/UIM coverage. If you have it already, try to get as much as you can afford. If you don’t have it, please contact your agent and get as much as you can. If you have specific questions about coverage, you are welcome to write to this blog and we will do our best to answer them.
Chris
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