More people carry only minimal auto insurance for several reasons: it’s cheaper than full coverage, they drive an older car, or they don’t think they will ever need comprehensive auto insurance. Driving in all 50 states without liability coverage for bodily injury and property damage is also illegal. Getting caught without auto insurance could result in a suspended license or jail time.
Liability insurance covers compensation costs for injuries or deaths for which you are at fault. Suppose you are hurt in an accident that the police attribute to your reckless driving. In that case, liability auto insurance does not pay for your medical bills, damage to your vehicle, or property damage.
The Ledger Law firm knows from experience that many drivers do not realize the risks involved with carrying liability insurance only. Without comprehensive coverage, drivers gamble on their financial stability each time they leave their homes. Even one minor accident could leave you without a working vehicle and swamped with compensatory bills.
Risks of Low Coverage
Liability
Standard liability auto insurance limits do not provide sufficient coverage for medical bills or property damage if you are deemed the at-fault driver. For example, if someone driving on the right side of a road drifts into the left lane and sideswipes another car, they could seriously injure the driver of that car.
Concussions, broken bones, or lacerations can generate medical bills as high as $100,000 or more. Liability coverage will not help pay for injuries or property damage you caused. In other words, you could be responsible for compensating the driver and their passengers for injuries.
Collision Coverage
Collision coverage pays for damage to your vehicle, but low coverage limits can leave you financially unprotected. Repairs or replacement costs can easily exceed basic coverage, especially for newer or high-value vehicles that require specialized parts and mechanical knowledge.
Insufficient insurance coverage can result in significant financial consequences, higher future premiums, and difficulties securing car insurance. If you are found at fault in an accident and carry minimal collision coverage, you could face lawsuits that threaten your assets.
Benefits of Higher Auto Insurance Coverage
Comprehensive Protection
Higher insurance coverage shields drivers from the stress of paying exorbitant medical expenses resulting from collisions. Comprehensive coverage also pays for extensive vehicle repairs if the vehicle is not considered totaled by the insurance company.
For at-fault drivers, the best benefit of comprehensive coverage involves legal fees associated with injured drivers seeking compensation. Adequate comprehensive policies will help pay for legal fees incurred by an at-fault driver.
Avoiding Out-of-Pocket Costs
Higher auto insurance also covers repairs or replacement costs caused by events beyond your control, such as natural catastrophes, theft, vandalism, or fire. For example, suppose a tree falls on your parked car during a storm, or your vehicle is stolen. In that case, comprehensive coverage will pay for repairs or replacing your stolen car after you meet your deductible.
Prepares for Rising Costs
Today’s car insurance plans proactively address the rising expenses of vehicle repairs and medical costs. In addition to offering adequate coverage for repairing new vehicles, comprehensive insurance policies often include additional benefits like roadside assistance and rental car coverage.
The Big Misconception About Higher Insurance Coverage
It is a pervasive myth that higher insurance coverage costs too much. The few extra dollars you spend each month on better coverage will give you financial peace of mind and ensure you won’t go bankrupt because of a minor accident.
Opting for higher auto insurance coverage is a sensible strategy that puts you in control of maintaining financial stability. Accidents can and do happen. Even if you have driven for decades without being involved in an accident, the risk of an accident impacting your life should always be a genuine concern.
Dealing with the aftermath of an auto accident and understanding your insurance policy is incredibly challenging and stressful.
Call The Ledger Law Firm today at (800) 300-0001 to get immediate and compassionate assistance with navigating the financial, physical, and emotional consequences of a car crash involving you or a loved one.
Minimum Policy Limits By State
