Car insurance companies use clever characters and funny situations in commercials to try to get you to choose their company. But those commercials don’t provide what you really need to know to make a smart purchase – information about how much coverage and what types of coverage to buy.
It’s important to research how much coverage you need. Lives can be ruined when people don’t know all the facts when they get their car insurance. They may later find out they didn’t purchase enough insurance, or the right insurance, until after they have been in a car accident.
While price is a factor when buying an auto insurance policy, it shouldn’t be your only consideration.
Car repairs and medical bills are expensive. Too often, the amount of liability insurance available does not cover the actual damages suffered in a car accident.
Purchasing car insurance with a certain amount of coverage doesn’t insulate you from being held responsible for all the damages you cause in a crash.
How Much Car Insurance Should You Purchase?
When it comes to liability insurance, it’s important to ask yourself one question – if you cause an accident that injures someone else, how much coverage do you need to pay for that person’s injuries before your personal assets are at risk? Only you can determine how comfortable you are with that risk.
In South Carolina, drivers are required to carry liability insurance with a minimum limit of $25,000 per person. But we all know about the high costs of health care. After a car accident, the initial trip to the emergency room could easily cost $10,000. It doesn’t take much for medical bills to quickly exceed $25,000.
For example, if you have only the minimum amount of liability coverage and cause a car accident, if the injured party has $40,000 in medical bills, you may be held personally responsible for the remaining $15,000. That could be financially devastating.
Of course, you should buy the insurance you can afford. But it’s a good idea to keep in mind the risk you face if you buy too little coverage and cause an accident that results in serious injuries to someone else.
If you need help after a car accident – or need advice about what kind of insurance to buy – make sure to contact a qualified attorney.