A question that may not be asked enough, “Do you have proper coverage on your auto policy?” Not really the topic of choice in most conversations, but important nonetheless. Having lower coverage limits reduces premium, but could leave you and your assets exposed if deemed liable in an accident. State minimum required or even lower liability limits on both bodily injury and property damage may only cover a portion of injuries and damage sustained in an accident.
For example, you get into an accident that is your fault with another vehicle carrying the driver only. Injuries sustained by the other party total $40,000 and the vehicle is totaled that was valued at $50,000. If your insurance policy has limits of $25,000/$50,000/$25,000, (which means $25,000 of bodily injury liability for one person, $50,000 bodily injury for all people in an accident, and $25,000 of property damage liability) you would not be fully covered by insurance in this accident. You would still be responsible for the remaining $15,000 of bodily injury and $25,000 of property damage, leaving you and your assets exposed.
It is not uncommon for accidents to meet and exceed losses described in the previous example. Transferring that risk to an insurance company to help protect instead of leaving yourself exposed is worth considering. Across time, as you accumulate more assets, consider increasing your liability limits on your auto policy. Losing those hard-earned assets due to an auto accident is the last thing anyone wants to happen.
A simple policy review to know what coverage you have and what you may need only takes a few minutes. If you need help with your Louisiana Auto Insurance feel free to give us a call at 985-542-6900!