To protect your own interests, you need to do your own research and come up with your own plan. Then, take what the agent tells you and filter it through what you’ve already learned. This is definitely a situation where being informed can save you a lot of money.
Doing this kind of research is really easy today. Just get on the Internet, go on over to Google and start looking. There are thousands of insurance agents all over the country with websites. And each of them has filled their site with information designed to help you understand what insurance coverage is available and what all the industry terms mean.
The first auto insurance coverage you should look at is the liability coverage. In most states this also includes bodily injury. Almost all states have required minimums for this type of coverage. But are those minimums right for you? Only you can decide.
Choosing the minimum coverage will save you money up front in premiums, but what if there ever was an accident? Could you afford it? Once your coverage levels are maxed out, the insurance company stops paying and you’re responsible to take over the financial obligations. This means that if you or someone that you injure has ongoing medical issues, once your coverage limit has been reached, the insurance company will stop paying the bills. You’ll then be responsible. Are you in a financial situation where you can handle that? Even if you are, is that what you want to be spending your money on?
My advice is to get the prices from your agent on the different levels of liability coverage. Then see what fits into your budget. Usually the premium prices are not that much more each month for what can be a sizeable difference in coverage limits.
So you can see why you shouldn’t just go with the minimums because they’re cheaper. Get the numbers, do the research, get advice from your agent – then make your decision. Find the limit that makes you feel most comfortable.
And remember, if your situation in life changes, your insurance coverage should probably change too. These kinds of changes would be things like adding a new baby to the family, getting a new job with a longer commute, having a teenage driver in the house or sending an older child off to college. At the very least, you should review your new situation with your agent and get their opinion on changing your insurance coverage.