How Auto Insurance Really Protects New Jersey Car Owners
When last did you sit down with your insurance agent to discuss the specific details of your auto insurance policy? Many people often shop based on price and don’t really consider the consequences of being under insured before it is too late. If you are like most people, chances are you couldn’t even explain to your neighbor or coworker what levels of protection you have with your auto insurance. Let me share with you why this is something you need to take a look at.
Property Damage – Let’s say that you have the New Jersey auto insurance state minimum coverage for Personal Property Damage of $5,000 and you happen to hit a car that is worth $100,000 and happens to need some repairs in the amount of $25,000. The difference would be a large check to write and one that could be avoided by having a realistic amount of coverage for Personal Property Damage.
Bodily Injury – Imagine in that same accident that caused $25,000 worth of damage, three people are injured with medical bills of $10,000, $35,000, and $45,000 respectively. Because you thought you were going to save a few bucks, you had the minimum coverage of $15,000 per person and $30,000 per incident; you come up $60,000 short here.
So just by being under insured in these two categories, you now have an insurance company coming after you for $80,000 and they find out you own a home with equity. Do you see where this is going?
Having higher limits isn’t just about your agent trying to make a few extra bucks, it’s about avoiding those tough phone calls to tell someone that because they saved $20 per month, they are now $80,000 in debt.
Auto insurance is designed ultimately to protect your assets. How much coverage you need will be different from the next person. If you have unlimited financial resources and you are a risk taker, then perhaps you can do with less coverage; although I would still rather pay just a little money each month to protect my wealth.
If you are a New Jersey or New York resident, contact us today to discuss your situation with one of our auto insurance experts who can help you make sure your assets are protected.