Auto Insurance: When The Minimum Just Isn’t Enough
Who amongst us doesn’t love a great deal or bargain? Most of us have felt the rush of scoring something for less than the value we thought we would have to pay, and we love it. This is especially true when it comes to things we need to buy, like insurance. Massachusetts requires all vehicles to have auto insurance, and they have even established minimum limits for what those policies must cover. What most people don’t know is that the minimum coverage is often not enough coverage if you are in a serious accident, and if you don’t have enough coverage you can become personally responsible.
For example: if you are in an accident with multiple vehicles and you are at fault, the damages can add up quickly. If there is $50,000 worth of damages (not impossible given the price tags of newer vehicles) and you only have the minimum coverage the other person’s insurance company will look to you personally to provide the difference. If you refuse, they can check into your assets and pursue their money through collections and legal action. Additionally the innocent parties involved can also pursue legal action for injuries or damages that your lack of insurance could not cover. Assets such as your home, savings, investments and even future earnings are all at risk.
For many insurance companies and drivers, increasing the limits of your policy, even doubling them results in a minimal premium increase. Sometimes less than $50. If you have recently switched insurance providers, or are considering it to save some money make sure you check your policy to confirm that none of your limits have been lowered to the state minimums.
Contact your customer service representative if you have questions about your coverage or to make sure that you have the right coverage for your peace of mind and financial protection.