Auto Insurance.
Not the most exciting topic to talk about until you are shopping for it or you need to use it. Understanding some basic principles about Auto Insurance can help you make an educated decision on your coverage.
First Question: How much coverage do I need?
Answer: As much as you can afford. One of the sayings that is passed around insurance circles is “You don’t have to be a millionaire to be sued like one.” Yes, I have used it to my chagrin. But it is true. The simple fact is that if you are involved in an automobile accident, your liability insurance limits need to be able to cover the damages. And with the cost of medical expenses going through the roof and the increasing costs of repairs to vehicles, a state minimum policy just will not cover you if you have anything more than the proverbial fender bender.
One thing to remember is that you can be sued not only for what you have but also for what you will have in the future. Not only could your property be seized but your future earnings could be garnished for the rest of your working life.
So take a look at what coverage limits are available to you. Look at your lifestyle, your retirement savings, your possessions and your home. Many times you can add hundreds of thousands of dollars of coverage to your policy for a lot less than you would believe.