You need to at least carry the state minimum coverage for liability. That can vary by state. In Ohio it is $12,500 per person $25000 per occurrence. I recommend higher limits due to the high award settlements when a person is sued. I wouldn't carry less than $50000 per person $100000 per occurrence with $50000 property damage.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
In order to operate a car in most states you must meet minimum financial responsibility limits. These are normally represented by insurance with specific bodily injury and property damage liability coverage. While this satisfies the state requirement it is not sufficient in many accidents. The company is only responsible to meet the amount of coverage provided. If your limit was $30,000 of liability coverage and you hit a van carrying two children and both of them required ambulance service to emergency and were seriously injured, your limits would be exhausted in the first few days. The remaining expenses will probably appear as a law suit against you and any assets that you might have.
Your lender will require that you maintain physical damage insurance on your car. In fact, they retain the right to purchase a collateral protection certificate which is something like insurance and pass that cost directly to you if you fail to maintain coverage. The lending company will give you latitude as to how much deductible you can select but they want to make sure that their interests are protected.
The most important thing to understand is that the cost of an insurance policy is best determined when you have a claim. If the policy doesn’t cover the damages, it was too expensive. Select well because it can make a substantial difference when you experience a claim.
When you meet with an insurance agent to select coverages it is best to choose an agent who will listen to you, provide sound financial advice and communicate clearly with you and the insurance company. Setting limits is a critical issue. The agent should tell you the maximum amount of liability insurance that he can provide in your situation. You should start with this maximum number because a lawsuit can cause serious damage to you financially. If you can afford the additional premium you could even consider an umbrella policy to extend further the liability limits.
Often property damage liability limits are separate. Many cars cost in excess of $50,000 and in the event of a multiple car accident exceeding $50,000 is possible. Take as much coverage as is offered.
The agent will then offer you medical payments coverage. Select the highest available limit unless you are confident that you will not have an occupant in your car who is not fully insured for medical care. This coverage will allow you to call for an ambulance and make sure proper medical care is extended to those in your vehicle.
Your company will offer uninsured and underinsured coverage. This protects you should you be hit by someone without insurance or someone with inadequate insurance. This situation comes up frequently and this coverage should not be overlooked. Consider a high limit.
The company will probably offer an accidental death and dismemberment benefit. That benefit is a form of life insurance when death or dismemberment is the result of an auto accident. It is highly restricted but it is also very inexpensive.
Other benefits such as stowing and roadside service provide you with a single point of contact should you have mechanical problems or a collision. Generally these are a good value.
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Your lender will require that you maintain physical damage insurance on your car. In fact, they retain the right to purchase a collateral protection certificate which is something like insurance and pass that cost directly to you if you fail to maintain coverage. The lending company will give you latitude as to how much deductible you can select but they want to make sure that their interests are protected.
The most important thing to understand is that the cost of an insurance policy is best determined when you have a claim. If the policy doesn’t cover the damages, it was too expensive. Select well because it can make a substantial difference when you experience a claim.
When you meet with an insurance agent to select coverages it is best to choose an agent who will listen to you, provide sound financial advice and communicate clearly with you and the insurance company. Setting limits is a critical issue. The agent should tell you the maximum amount of liability insurance that he can provide in your situation. You should start with this maximum number because a lawsuit can cause serious damage to you financially. If you can afford the additional premium you could even consider an umbrella policy to extend further the liability limits.
Often property damage liability limits are separate. Many cars cost in excess of $50,000 and in the event of a multiple car accident exceeding $50,000 is possible. Take as much coverage as is offered.
The agent will then offer you medical payments coverage. Select the highest available limit unless you are confident that you will not have an occupant in your car who is not fully insured for medical care. This coverage will allow you to call for an ambulance and make sure proper medical care is extended to those in your vehicle.
Your company will offer uninsured and underinsured coverage. This protects you should you be hit by someone without insurance or someone with inadequate insurance. This situation comes up frequently and this coverage should not be overlooked. Consider a high limit.
The company will probably offer an accidental death and dismemberment benefit. That benefit is a form of life insurance when death or dismemberment is the result of an auto accident. It is highly restricted but it is also very inexpensive.
Other benefits such as stowing and roadside service provide you with a single point of contact should you have mechanical problems or a collision. Generally these are a good value.