Q: I am trying to purchase the lowest cost auto insurance I can find. Is general auto insurance enough coverage?A: If by general auto insurance you mean the minimum required by law then in most cases it will be enough coverage for a minor accident. A total loss may be a different story however. Purchasing additional coverage is especially important if you have significant assets like owning a home, stocks, or a savings account because all of these can be lost due to not having enough insurance coverage.
If your state requires you to carry $10,000 dollars in property damage and you cause $15,000 dollars worth of damage you may be held liable for the other $5,000 dollars. In this case we would recommend increasing your coverage amount to at least $25,000 dollars if possible.
Being in a car accident is traumatic enough without finding out later that it may cost you several thousand dollars. Increasing the coverage amount will cost slightly more per month, but it will bring more peace of mind to you as well. Unless your financial situation is such that it will not be possible to meet higher monthly premiums we always advise to increase the amount of coverage you purchase.
In general auto insurance is one of those things people only think about after the accident has occurred. By planning ahead you may save several thousand dollars for a few more dollars per month in the event you are involved in a total loss accident. Good luck with your auto insurance search!
